HomeMy WebLinkAboutAgenda - 05-18-2010 - 8bORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 18, 2010
Action Agenda
Item No. 8 - b
SUBJECT: Recommendations from the Economic Development Commission on Economic
Development
DEPARTMENT: Economic Development PUBLIC HEARING: (Y /N) No
ATTACHMENT(S):
Agenda Materials Provided by EDC
Chair Kathleen Ferguson
Investing in Our Future: Strategic
Recommendations: Places, Tools, and
Knowledge (Under Separate Cover)
INFORMATION CONTACT:
Brad Broadwell, 245 -2325
Kathleen Ferguson, Chair, Economic
Development Commission, 998 -2153
PURPOSE: To receive recommendations from the Economic Development Commission (EDC)
on economic development as outlined in the Commission's six -year implementation strategy
and FY 2010 -2011 budget request.
BACKGROUND: The Economic Development Commission (EDC) has undertaken an
extensive effort working with the UNC Graduate School's of Planning and Government to
educate its members and the public on the issues which surround development. in Orange
County. The EDC has provided a report with suggested recommendations as to how Orange
County may move forward in creating jobs while enhancing the commercial tax base in Orange
County. Among the recommendations the EDC proposes the need to:
a. Fully fund the water and wastewater infrastructure improvements needed in the
Economic Development Districts.
b. Endow the EDC's economic development tool kit with a completed Unified
Development Ordinance and a stream lined permitting process, identify and dedicate
a funding source for recurring annual investments & financial incentives and
recapitalize the loan fund so that the County can compete effectively with regional
programs and stimulate the entrepreneurial environment in the County; and
c. Commission research and build a knowledge base so that key decisions are data -
driven, based on current analysis, and result in economic development performance
that is valued by Orange County stakeholders.
Kathleen Ferguson, Chair of the EDC, and Anita Badrock, past Chair, will present the
recommendations to the Board.
2
FINANCIAL IMPACT: The EDC recommends that the Board of Commissioners approve the
recommendations in their entirety, including fully funding the $525,000 increase in the Economic
Development Department's FY 2010 -2011 budget.
RECOMMENDATION(S): The Manager recommends that the Board receive the report and
recommendations of the Economic Development Commission. It may be appropriate to
schedule further work sessions with the EDC to enable expanded discussion of the
recommendations.
LICE
lm achmeo-+ -I-
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Action Agenda Item Abstract
Meeting Date:
18 May 2010
Subject:
Approval oflnvesting in Our Future, the Economic Development Commissions' Recommended Six -Year
Implementation Strategy
Department:
Economic Development
Public Hearing:
N
Attachment(s):
(a) Investing in Our Future: Strategic Recommendations: Places, Tools, and Knowledge, Orange County
Economic Development Commission Estimated Financial Impact: Fiscal Years 2010/2011— 201512016
and Budget Request: Fiscal Year 201012011
(b) Letter from the Chair, Orange County Economic Development Commission
(c) Private Investment, Jobs, and Wealth Creation: An Overview ofEconornic Development Strategies, Best
Practices, and Activity Driving Orange County Economic Development Outcomes
a. Introduction
i. Summary of Recommendations
ii. The EDC's Research Rationale and Key Data Sources
b. The Orange County Paradox
c. Facing Our Challenges
d Current Trends in Business Needs
L Entrepreneur and Small Business Needs
ii. Supporting Access to Capital
iii. Lowering Site Selection Risk
J v. The Role oflncentives in Economic Development
e. Meeting Business Needs: A Look at State and Regional Economic Development
L State Priorities
ii. Orange County and the RTRP Advantage
in. The Four Pillars of Regional Economic Competitiveness
f. Understanding htdushy Clusters and the Opportunities for Orange County
i. Green Economy Business Growth
ii. E- Learning, Digital Gaining, and Traininglmovation
iii. Reality Check (Regional Population and Job Growth)
g. Leveraging Opportunity: The Role of Local Government in Economic Development
h. County-Level Economic Development Best Practices Detail
I. Alanrance County
ii. Chatham County
iii. Durham County
iv. ii'ake County
i. Adapting Accepted Practices and a Data - Driven Programmatic Approach to Economic
Development
i. The First Leg: Infrastructure
ii. The Second Leg: Economic Development Toolkit Tailored to Current Market Conditions
iii. The Third Leg: Current Data, Analysis, and Knowledge
j. Conclusion
PO Box 1177 • Hillsborough, NC 27278
(919) 245 -2325 . FAX: (919) 644 -3008
EMAIL: edcmaH0co.orange.nc.us • WEB ADDRESS: w"v.co.oranpe.nc.vs/ecodev
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ORANGE COUNTY
Eton k Development
C.mM! nm
El
k. Appendix I Research Scope Requested of UNC DCRP Interns
1. Appendix II The Role ofReseareh Universities in Indusny Cluster Development
nn. Appendix 111. Comparative Funding of County Economic Development
n. Appendix IV. Incentive Programs for Businesses Locating /Growing in Durham City and County
o. Financing Options and Resources
It. Environmental and Historical Assistance
q. Appendix V. Wake County Business Investment Grant Policy
i. Cary
ii. Fuquay- Vardna
iii. Garner
iv. Knightdale
v. Morrisville
vi. Wendell
vii. Zebulon
r•. Appendix Vf. Chatham County and Siler City Incentives Policies
s. Appendix VII. Alamance Incentives Policies
i. City Of Burlington Economic Development Incentive Policy
t Appendix VIII. Selected UNC Student hntern Papers
L Part A — Analysis of Orange County's Site Selection Attributes, Ashley Yingling
ii. Part B— From Economic Base to Economic "Basin ": Keeping UNC ideas Here and
Case Study, Ben Houck
iii. Part C — Tax Increment Financing and other Development Financing Tools to grow the
tax base of Orange County, North Carolina, Michael Levengood
iv. Part D — Possible Metrics for an Economic Development Goal Statement, Sarah Satinsky
v. Part E— Structuring Economic Development, Megan Johnson
vi. Part F— US 70 1Cornelius Street Corridor: Market Study and Development Opportunities
Report, Aaron Nousaine, Dana Archer - Rosenthal, Jamaal Green, and Amanda Campbell
u. Appendix IX North Carolina Certified Site Program
Information Contact:
Brad Broadwell,
Purpose:
To provide the Board of County Commissioners with the Orange County Economic Development Commission's
recommended six -year implementation strategy and FY 2010 -2011 budget request.
Background:
Established by the Orange County Board of County Commissioners, the EDC is tasked with providing "advice and
guidance to the Orange County Board of County commissioners in implementing economic development policies
which create a balanced, dynamic local economy that promotes diversity, sustainable growth, and enhanced
revenues while embracing community values ". To carry out this mission given the pathways outlined in the
Investing in Innovation plan and the emphasis that the Board of Commissioners have placed on economic
development issues recently, the EDC embarked on a months -long mission to identify the critical path necessary for
Orange County to increase its commercial tax base and to estimate the multi -year investment in economic
development activities commensurate with this and the County's economic development objectives.
The EDC recommends comprehensive, systematic, and strategic upgrading of the county's economic development
capacity. We believe implementing the complete set of recommendations being submitted to the Board is necessary
to advance the commissioners' interests in improving Orange County's economic development prospects and its
commercial tax base. The EDC's recommended strategy embraces a three - pronged approach consisting of
infrastructure, tools, and knowledge, which when implemented as a program will move Orange County closer to
matching the economic development capacity already present in our neighboring jurisdictions, particularly Chatham,
Durham, Wake, and Alamance counties, while preserving Orange County's unique qualities.
PO Box 1177 • Hillsborough, NC 27278
(919) 245 -2325 . FAX: (919) 644 -3008
EMAIL: edemail@co.oranoe.nc.us • WEB ADDRESS: wow co.orange nc ustecodev
,
Xar.
ORANGE COUNTY
Eco icO velopnent
Commission
5
In addition to providing the core recmmnendations, the EDC also has taken the opportunity to respond to several
Commissioner requests for information concerning the current economic development environment and best
practices being implemented by neighboring counties. Using Orange County's Comprehensive Plan 2030's
Objective 1.8 to "explore policies to use in attracting and encouraging development of companies and enterprises
that will build and expand upon the County's economic base", as a directive, the EDC examined economic
development through the eyes of economic development professionals, potential investors, and regional experts.
As part of this effort, the EDC sought to learn more about the concerns of business from its perspective. In addition,
we sought information about on economic development strategies, policies, and tactics practiced in our region,
particularly those practiced by surrounding counties to better understand the forces driving private investment, job
creation, and wealth generation. To assist the County Manager and Board of Commissioners in their deliberations,
the EDC has condensed research findings in the companion paper, "Private Investment, Jobs, and Wealth Creation:
An Overview of Economic Development Strategies, Best Practices, and Activity Driving Orange Comity Economic
Development Outcomes ". In 20 pages plus appendices, the EDC has summarized data acquired over the past 12
months from a variety of sources including local economic development professionals and business investors; the
North Carolina Department of Commerce and its regional economic development partnerships; area Chambers of
Commerce; leading trade publications addressing the needs of site selection specialists, relocating businesses, start-
ups, and entrepreneurs; and leading experts from several UNC centers of research.
Financial Impact:
The EDC recommends that an additional $525,000 be invested in economic development functions in FY 2010/2011
over and above FY 2009 42010 funding. In addition, the EDC estimates that over a six -year period, the entire
investment in research, strategic planning, and a robust economic development tool kit will be approximately
$2,200,000, excluding the cost of bringing water and wastewater treatment capacity to the Buckhom and Eno EDDs.
Recommendations:
Places, Tools, and Knowledge. These are the three tenets of our recommendations. We strongly recommend the
Orange Comity Board of Commissioners adopt a strategic programmatic approach to economic development by:
• Fully funding the water and wastewater infrastructure improvements needed in the Economic Development
Districts to make them more attractive to investors and business owners.
• Endowing the EDC's economic development tool kit so that the county can effectively respond to opportunities
to recruit, retain, grow, and generate the kinds of businesses that are desirable
• Commissioning research and building its knowledge base so that economic development decisions are data -
driven, based on current analysis, and result in performance that is valued in Orange County.
PO Box 1177 . Hillsborough, NC 27278
(919) 245 -2325 • FAX: (919) 644 -3008
EMAIL: edcmaikaco.oranoe.nc.us • WEB ADDRESS: "- co.orange.ncus/ecodev
Economic Development
Commission
Investing in Our Future
Strategic Recommendations:
Places, Tools, and Knowledge
Orange County Economic Development Commission
Estimated Financial Impact: Fiscal Years 2010/2011 - 2015/2016
Budget Request: Fiscal Year 2010/2011
Approved by the Orange County Economic Development Commission: 8 February 2010
Presented to the Orange County Board of Commissioners: 18 May 2010
3
Introduction
The Orange Count)' Economic Development Commission (EDC) recommends comprehensive,
systematic, and strategic upgrading of the county's economic development capacity. We believe
implementing the complete set of recommendations contained herein is necessary to advance the
commissioners' interests in improving Orange County's economic development prospects and its
commercial tax base. These recommendations represent the culmination of a research process that began
last spring and included discussions with area economic development experts augmented with
preliminary research performed by graduate students enrolled at UNC's Department of City and Regional
Planning (DCRP).
Orange County needs a comprehensive approach to engage
the economic development opportunities regularly available
in our world -class metropolitan region; opportunities which
result from business investment and location decisions
constantly being made by investors, entrepreneurs, CEOs,
and boards of directors. In the EDC's judgment,
implementing this strategic program will move Orange
County closer to matching the economic development
capacity already present in our neighboring jurisdictions,
particularly Chatham, Durham, Wake, and Alamance
counties,l while preserving Orange County's unique
qualities.
Without BOCC endorsement and
funding of these recommendations, we
believe Orange County's economic
development policies will continue to
perpetuate the status quo, and Orange
County will continue to rank lowest or
near lowest in private commercial
investment and job creation not only
amongst Alamance, Chatham, Durham,
and Wake counties but also within the
entire 13- county RTRP region for the
foreseeable future.
The EDC strongly urges the county commissioners to adopt these recommendations in their
entirety including fully funding the $525,000 increase in the Economic Development Department's
FY 2010 -2011 budeet.
Reconunendatlons Dverview
Places, Tools, and Knowledge. These are the three tenets of our recommendations. We strongly
recommend the Orange County Board of Commissioners to:
1. Fully fund the water and wastewater infrastructure improvements needed in the Economic
Development Districts to make them more attractive to investors and business owners.
2. Endow the EDC's economic development tool kit so that the county can effectively respond to
opportunities to recruit, retain, grow, and generate the kinds of businesses that are desirable
3. Commission research and build its knowledge base so that economic development decisions are data -
driven, based on current analysis, and result in performance that is valued in Orange County.
Thus, our recommendations include completing infrastructure projects, streamlining regulatory policies,
initiating research, and investing in new and expanded tools for the proverbial tool kit that is essential to
all local governments committed to economic development. Our recommendations are listed below.
Figure 1 (page 5) summarizes their financial impact and Figure 2 (page 6) places the recommendations on
a critical path timeline.
' More information about our region's competitive environment is detailed in Private Investment, Jobs, and 137eatth Creation: An Overview of
Economic Development Strategies, Rest Praclices, and ActirityDriving Orange Cotmo, Economic Development Outcomes.
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GRANGE COUNTY
Fsmwar.<Wudapnem
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Specific Recommendations
1. ASAP, commit the county to bringing water and wastewater infrastructure to the Buckhorn and Eno
Economic Development Districts (EDDs) within a timeframe that establishes confidence with
developers, investors, and business owners.
2. ASAP, complete all phases of the Unified Development Ordinance effort within a timeframe that
establishes confidence with developers, investors, and business owners and also results in an
reduction in the time needed for a project to go from application to permit issuance and into
construction..
3. Continue to build on re-established connections with the Research Triangle Regional Partnership.
4. Increase the county's engagement with value-adding economic development - related research centers
at UNC, Duke, and NC State, as well as other institutions and organizations.
S. Enter into a one -year contract with economic development specialists at UNC- Chapel Hill for
research and consulting services focusing on critical topics such as industry cluster analysis, R &D
spin -offs from local universities, financing plans for the EDD infrastructure investments, best
practices for sustainable economic development, and developing benchmarks and metrics for tracking
the county's progress regarding economic development.
6. Identify and dedicate a funding source for recurring annual investments in the local economic
development tool kit.
7. Capitalize a pilot fund for business recruitment and retention and re- capitalize the small business loan
fund.
8. Task staff to get the Buckhorn and Eno EDDs certified by the NC Department of Commerce as
development- ready.
9. Identify and designate additional land for commercial development in addition and/or adjacent —to
the EDDs.
The EDC acknowledges that these recommendations call on other departments and outside agencies to
help improve Orange County's economic development prospects. For instance, the county planning
department will be instrumental in implementing the first two recommendations. Additionally, the EDC
recommends that the county commissioners and manager identify and implement reliable and sustained
funding for the economic development strategy outlined in this document.
E.rnecte(l Resalts
The EDC is confident that adontin¢ and fully fundine these recommendations will lead to improved
economic development outcomes, including increased tax revenues available for education and
other program funding in Orange Coun
It is critical that Orange County begin receiving a share of the economic development bounty regularly
bestowed upon and within our metropolitan area that is commensurate with Orange County's population,
central location, positive transportation assets, educated workforce, high quality of life, and world-class
University- anchor. For instance, the region was the recipient of $1,900,000,000 in private investment and
10,000 new jobs in 2009, alone —yet none of these accrued to Orange County.
2 1 Page
s®
However, with a complete economic development toolbox available that the commissioners have the
authority to invest in, Orange County will gain its share of regional investment and business recruitment
wins. Orange County also will be able to improve its performance of business generation, retention,
growth, and expansion especially with respect to local business start -ups and companies owned or led by
Orange County resident executives. Specifically, we recommend that the EDC staff commit itself to
reaching to -be- specified target increases for the following benchmarks:
• Number of qualified inquiries
• Securing business development start -ups generated from local universities
• Securing business start -up and expansion from local entrepreneurs
Retention and/or expansion of established county -based businesses
• Capital investment
Private sector job creation,
• Commercial tax base,
• Increased hit rate (number of wins gained from total number of inquiries)
Increased strike rate (value of wins from estimated total value represented by inquiries)
Setting targets – and monitoring results —for these and other economic development objectives will be an
important pail of our success. However, the EDC recommends that the appropriation of funds to
recapitalize the small business loan fund and for business retention and recruitment not be burdened with
numerous criteria or with criteria that are narrowly specified. Rather, we suggest that this around of
investment be subject to general guidelines that permit the Economic Development Director and County
Manager to exercise their professional judgment liberally, understanding that the County Commissioner
ultimately will have the opportunity to agree to the terms of the investment once the negotiations are
complete subject to Commissioners' approval.
Investing_ In Research
The EDC strongly believes that by investing in the research component now, the county will soon have
the capacity to monitor the return on its increased investments in economic development and monitor how
closely the economic development results match the values and aspirations of our citizens.
hi addition to using metrics to monitor progress, the EDC has preliminary research that suggests the
process of developing clear metrics will improve the clarity of desired goal and objectives. Regularly
monitoring results will also permit the commissioners and EDC to adjust the resources invested in the
different tools of the too] kit. The EDC advisory board recommends that developing benchmarks, metrics,
and the evaluation procedure begin as soon as possible.
Furthermore, with new research in -hand next spring, the EDC will be able to issue a follow -on set of
recommendations designed to further increase the county's economic development successes. We
anticipate next spring's recommendation will focus on matching research results to strategic planning,
including studying the efficacy of commissioning a market development and branding campaign in which
Orange County's economic development identity is relaunched, enabling the county to better target
desired clusters, industries, and businesses
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Financial Impoet
The total financial impact of these investments affects not only the Economic Development Department's
budget, but also the Planning Department's budget and the County's Capital Budget. Also, to achieve
long -term sustained success, investments beyond FY 2010 -2011 will be required for each of these
recommendations.
• The EDC recommends that an additional $525,000 be invested in economic development functions in
FY 2010 -2011 over and above last year's funding. (Figure 1).
• The EDC estimates that over a six -year period' the entire investment in research, strategic planning,
and a robust economic development tool kit will be approximately $2,200,000, excluding the cost of
bringing water and wastewater treatment capacity to the Buckhonr and Eno EDDs. (Figure 2).
C'onelrrsiorl
With these investments Orange County will begin to respond effectively, compete successfully, and
compare favorably within our region for engaging economic development opportunities. We will be
rewarded with more commercial property tax revenues, more local jobs, and more locally-owned
businesses.
Without these investments, Orange County will continue to rank in the low - bottom tier in private
commercial investment and job creation among the 13- county Research Triangle Regional Partnership
region and the lowest in private commercial investment and job creation as compared to the four
surrounding counties of Alamance, Chatham, Durham, and Wake.
' The six -year period was chosen to approximate how long it will take to get 100% water and wastewater treatment capacity to
both the Buckhom and Eno EDDs.
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URANGE COUNTY'
Eco'mrtc rk,<�Ioprtmt
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In Figure 1 you will find the projected financial impact of the EDC's strategic recommendations. Precise
requests are shown for FY 2010 -2011 and for the entire six -year period, order of magnitude estimates are
shown for the various tools in the tool kit.
Category _
TofatJmpBCt
Ty ,20
Ttrru FY.2O75 2Q16.
9, -
Ed t)ept Only '
Water & Wastewater Infrastructure
Buckhom EDD, engineering and design
TBD
Buckhorn EDD, construction costs
TBD
NA
Eno EDD, engineering and design
TBD
Eno EDD, construction costs
TBD
RTRP dues
120,000
18,500
Build relationships with other organizations
30,000
NA
Commission research from UNC and others
$150000
$25,000
recruitment and retention fund
1,000,000
250 000
—Capitalize
Rrca italize small business loan fund
1,000 000
250,000
EDD certification
TBD
na
TOTAL FINANCIAL IMPACT ITY 10 -11 thru FY 15 -16
S2300,000
S5,13,500
TOTAL FINANCIAL IMPACT FY 10 -11 Economic Development Dept. Only
Notes:
This table shows seven line items whereas you will find nine Specific Recommendations listed on page 2.,11c, bullet
point to "capitalize a pilot fund for business recruitment and retention and re- capitalize the small business loan fiutd'
is split into two separate components. In addition, three more specific recommendations are not hncluded in the figure
because they either have no financial impact at all or no financial impact associated with the Economic Development
Department. However all three additional recommendations: (1) complete all phases of the UDO, (2) Identify and
dedicate a funding source for recurring armual investments in the local economic development tool kit, and (3) Identify
and designate additional land for commercial development in addition — and/or adjacent to the EDDs, are critical
elements of the EDC's recommended strategy.
5 1 Page
3:10142
UNDERWAY I Bring water and sewer to Buckhom and Eno EDDs
UNDERWAY I Complete ASAP phase I of UDO task.
TBD* I Authorize 100% completion of Unified Development Ordinance.
TBD* Identify and dedicate a funding source to fund the county's economic development
tool kit
FY 10 -11 I Continue to build on re- established connections with the Research Triangle
Regional Partnership
FY 10.11 I Increase engagement with value-adding on development- related research
centers and other institutions.
FY 10 -11 Enter hnto one -year contract with UNC DCRP for economic development research
and consulting services
FY 10 -I1 ( Capitalize a pilot business recruitment and retention fund
FY 10 -11 1 Re- capitalize the small business loan fund
TBD* Task staff to get Buckhom EDD certified by NC Department of Commerce as
development - ready.
TBD*
Identify and designate additional land for commercial development in addition to tine
(initial research may be included in FY 10- Economic Development Districts.
I I research program and deliverables)
TBD Propose investment in 2nd round of research, to be followed by strategic planning &
(estimated Spring 2011) market development and branding campaign
"TBD (to be determined), i.e., the critical path designation (or timeline) for these elements will be determined by County
Manager and/or County Commissioners, with input from EDC staff and advisory board.
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ORANGE COUNTY
Economic Development
Comm;s Letter From The Chair, Orange County Economic Development Commission
18 May 2010
To Our Distinguished Board and County Manager,
The Orange County Economic Development Commission (EDC) wishes to thank the Board of County
Commissioners and County Manager for receiving Investing in the Future, the EDC's Six -Year Economic
Development Strategic Recommendations and the companion white paper, private Investment, Jobs, and M'ealth
Creation: An Overview of Economic Development Strategies, Best practices, and Activity Driving Orange County
Economic Development Outcomes. This white paper is offered in response to Commissioner requests for summary
information and data used to inform the EDC's recommendations. It is a privilege and honor to the County
Commissioners information and resources we believe are needed for effective data - driven policy development and
decision- making impacting the ability of Orange County to attract, grow, and retain businesses, jobs, and increased
standards of living for our citizens.
Background
In October 2009, the EDC Chair embarked on a series of face -to -face conversations with individual Comity
Commissioners and others involved with economic development activities. A common thread across these
conversations was the desire for the EDC to provide the County Commissioners with an actionable plan that the
County Commissioners could follow, which would lead to the growth of community- supported economic
development in the County.
Building on Orange County's Comprehensive Plan 2030's Objective 1.8 to "explore policies to use in attracting and
encouraging development of companies and enterprises that will build and expand upon the County's economic
base ", the EDC took on the task of examining economic development through the eyes of economic development
professionals, potential investors, and regional experts. As part of this effort, the EDC sought to learn more about
the concerns of business from its perspective. In addition, we sought information about on economic development
strategies, policies, and tactics practiced in our region, particularly those practiced by surrounding counties.
Rationale
The direction, sources, and activities undertaken by the EDC were driven by ten fundamental assumptions shared by
the preponderance of economic development professionals and experts driving decisions and activities in our region:
• Orange County is committed to policies and decisions based on best practices
• Orange County desires to increase share of regional private investment and job creation, while decreasing
reliance on non- private institutions (such as government and public universities) as the County's primary
employers
• Orange County desires to increase tax base diversity and increase its percentage of non- residential tax revenues
• Orange County desires to increase in- County employment and commerce, while decreasing the commuter rate
for resident workers and consumers
• Economic development is the primary investment tool local government is able to use to increase wealth and
economic prosperity for its citizenry and to fund social programs needed to support those who have not or
cannot participate in either
— Although education frequently is thought of as a primary tool, it's value to retaining residents is realized
only if there are sufficient local jobs attractive enough to keep graduates from leaving the County following
completion of educational opportunities offered by/in Orange County
I I P a g e
Economic development is shaped by forces of competition and market demand in which there are more
potential sites than business opportunities to fill them; Orange County cannot control those faces but can
choose how it adapts to them
Site selection decision- makers base decisions on criteria important to their business needs and shareholders
— For entrepreneurs and small businesses, these shareholders generally are limited to family members and
friends
— For established businesses, these shareholders generally include an expanded network of investors,
employees, suppliers, and customers
All things being equal, jurisdictions and property seller /lessors who understand and meet those needs of
business will attract and retain those businesses
• It is critical for Orange County to improve the trust quotient relative to its support for economic development:
'Trust= Perceived Value
ercerve rs
— When investor trust is low, the burden is on the other party(ies) to prove themselves otherwise
• Successful market shifts occur only after those offering innovations have successfully demonstrated an
understanding of market needs as well as the ability and willingness to satisfy those needs as understood by the
market.
— Successful market development requires speaking the same language used by those making purchase and
investment decisions
Snnunary of Strategic Recommendations
The EDC recommends comprehensive, systematic, and strategic upgrading of the county's economic development
capacity. We believe implementing the complete set of recommendations is necessary to advance the
commissioners' interests in improving Orange County's economic development prospects and its commercial tax
base.
Places, Tools, and Knowledge. These are the three tenets of our recommendations. We strongly recommend the
Orange County Board of Commissioners to adopt the ten recommendations as a strategic program in their entirety,
including fully finding the $525,000 increase in the Economic Development Department's FY 2010 -2011 budget
Places
Whether moving from the kitchen table to free - standing commercial space or expanding existing operations,
business -ready space must be available for economic development to occur. With Class A space priced higher than
that available in surrounding counties, Class B space being scarce, and wet lab space being unavailable, Orange
County has the opportunity to develop the Buckhorn and Eno EDDs in a way that can meet the needs of start-ups
and established businesses to locate or remain in the County. However, in order to achieve this objective, the EDDs
must be shovel - ready, complete with fill utility build -out. We believe any step taken without the funding and
completion of water and wastewater infrastructure to the Buckhorn and Eno economic development districts will
continue to eliminate Orange County from consideration by the majority of site selection specialists and business
owners looking to expand or relocate. By completing the North Carolina Certification process, Orange County will
immediately establish its EDDs as being high- quality shovel -ready sites that have satisfied 31 prerequisites valued
by CEOs, site selection specialists, and investors.
Tools
The second leg of our recommendations is the sustained endowment of an economic development tool kit so that the
county can effectively respond to opportunities to recruit, retain, grow, and generate the kinds of businesses that are
desirable. In today's economic development marketplace, there are more desirable businesses than desirable sites.
In order to differentiate themselves from other locations being considered jurisdictions must have numerous tools
available to adapt to the needs of interested businesses. Many start-up and established businesses view the Triangle
counties, including Orange as being equally attractive. In such a competitive environment, Orange County needs to
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have access to a variety of economic development tools in order to engage businesses and gain their commitment to
locate in the County. Depending oil whether the business is a start-up or an expanding enterprise or whether the
entrepreneur is building a family or high- growth business, their needs vary widely; thus the tools available to
Orange County economic developers must be equally diverse. Therefore, the EDC recommends timely adoption of
a Unified Development Ordinance capable of supporting permitting timelines of 90 days or fewer, capitalizing a
pilot fund for business retention and recruitment, and re- capitalizing the small business loan fund.. These three tools
will position Orange County to meet the strongest pinch points for the majority of businesses, particularly
entrepreneurial ventures and businesses in the 10 —100 employee range.
Knowledge
Getting the best return possible oil this proposed investment in infrastructure and economic development tools
requires a solid foundation of knowledge. Taking advantage of UNC resources, the EDC recommends amassing data
matching regional clusters and industries with Orange County assets, assessing viable finding mechanisms that meet
both short- and long -term fiscal needs, and evaluating tactical information on infi-astructure, regulatory, and
structured financial incentives capable of increasing Orange County's business attractiveness and marketability in
the region and state. An equally important component of knowledge acquisition is exchanging best practices and
experience with economic development professionals, business leaders, and university research and development
talent across the Triangle. Being part of the Research Triangle Regional Partnership, Orange County has access to
strategies, practices, and data developed by an economic development organization cited by the US Deportment of
Commerce as being the best of the best.
Financlal bnpact
In order to begin reversing Orange County's fiscal position by way of increasing the commercial tax base, we
believe that an investment of $525,000 in Fiscal Year 2010/2011 is needed. This will provide tools that can be used
immediately to support local entrepreneurs and established businesses and ensure that the Commissioners, staff, and
advisory board members have access to current information necessary for effective data - driven policy development
and decision - making.
Fiscal Years 2011112 — 2 01 412 01 5
The road to long -tern cash neutrality and fiscal sustainability, requires multi -year planning and investment.
Therefore, although our current budget request focuses on Fiscal Year 2010/2011, our strategic recommendations
encompass a six -year period from Fiscal Year 2010/2011 through Fiscal Year 2015/2016 and map the critical path
for achieving EDD certification, UDO establishment, ongoing start -up and established business support tools, and
ongoing data - driven decision - making. Based on information obtained from staff, surrounding counties and
municipalities, and UNC economic development professionals, we approximate a total investment of $2,300,000
spread across six years, excluding the county's investment in water and wastewater infrastructure.
Although the total investment is modest, compared with investments made by surrounding counties in economic
development, we believe that it is sufficient to transform non - performing land into revenme- producing commercial
property capable of funding education and other programs valued by Orange County residents. Without this
investment, Orange County will be unable to increase nom- residential tax revenues, which will cause continual
decline in service provision and quality long into the foreseeable future.
While Paper
To assist the County Manager and Board of Commissioners in their deliberations, the EDC has condensed research
findings in the companion paper, "Private Investment, Jobs, and Wealth Creation: An Overview of Economic
Development Strategies, Best Practices, and Activity Driving Orange County Economic Development Outcomes ".
In 20 pages plus appendices, the EDC has summarized data acquired over the past 12 months from a variety of
sources including local economic development professionals and business investors; the North Carolina Department
of Commerce and its regional economic development partnerships; area Chambers of Commerce; leading trade
publications addressing the needs of site selection specialists, relocating businesses, start-ups, and entrepreneurs;
and leading experts from several UNC centers of research.
The information detailed in this document summarizes information describing:
• Summary of Economic Development Challenges
31Page
• Summary of Current Trends in Business Needs
• Summary of Slate and Regional Economic Development Priorities, Strategies, and Activities Impacting Orange
County
Summary of Industry Clusters and Their Role in Orange County Economic Development
• Summary of the Role of Local Government in Economic Development
• Summary of Economic Development Best Practices Being Implemented by Counties Impacting Orange County
Opportunity
• Summary Roadmap for ILnplementing Data - Driven Economic Development Policies and Decisions
• Collection of UNC Student Research Papers
Compilation of Incentive Policies in Force in Surrounding Counties and Municipalities
Other Attachments
To further assist the County Manager and Commissioners, the EDC will compile an abbreviated archive of
correspondence and deliverables exchanged between the EDC and the UNC Department of City and Regional
Planning (DCRP). The EDC will submit letters of endorsement from DCRP faculty and local economic
development professionals. These additional materials will be made available on or before 18 May 2010.
Conclusion
I'd like to thank the EDC board members and staff for their commitment, patience, and rigor in taking this initiative
from concept to deliverable. I also would like to thank Dr. Meenu Tewari and the students of PL 773 who willingly
and enthusiastically embraced the EDC's research proposal and whmn contributed several portions of the final
product delivered today. Many thanks also are in order to the Commissioners, area Chamber members, and all who
contributed their insights, experience, and expertise, which led to the development of our recommendations and
companion deliverables. Lastly, I would like to thank EDC Vice - Chair, Allan Rosen, whose dedication and
perseverance was catalyzing and inspirational, and with whom it has been a pleasure and privilege to serve.
We look forward to working with the Commissioners and County Managers to achieve shared goals of increasing
private investment, jobs, and wealth creation for all of our residents. we believe that Orange County faces
tremendous opportunity to convert the present challenge into future prosperity but will benefit from this opportunity
only by reaching out to business as true partners rather than adversaries. We look forward to working with the
Commissioners and County Managers to achieve shared goals of increasing private investment, jobs, and wealth
creation for all of our residents.
Respectfully,
sly.-_._
Kathleen Ferguson
Chair, Orange County Economic Development Commission
May 2010
4 1 P a g e
Economic Development
Commission
Private Investment, Jobs, and Wealth Creation:
An Overview of Economic Development
Strategies, Best Practices, and Activity Driving
Orange County Economic Development
Outcomes
Prepared by the Orange County Economic Development Commission: May 2010
Presented to the Orange County Board of County Commissioners: 18 May 2010
Economic Development: Ltdtistrl, ,Stmrdm•d Defiuiiiott
Economic development is conducted by a network of professionals using an array of tools designed to
create and sustain a strong business climate. It can be defined as the specific activities, programs, and
tools aimed at
• attracting or creating private investment to expand a tax base;
• increasing employment opportunities, wages, and personal incomes; and
increasing wealth in a community.
FcongmL Development Handbook, NC Economk Develomrs Association
Orange County Economic Development Overarching Goal
Viable and sustainable economic development that contributes to both property and sales tax revenues,
and enhances high - quality employment opportunities for County residents.
2030 02mamhensive Plan Overarching Goal Statement for Economic Develo mp ent aq roo ved by BOCC November 2008
Orange County Board of County Commissioners Economic Development Goad
"Implement planning and economic development policies which create a balanced, dynamic local
economy, and which promote diversity, sustainable growth and enhanced revenue while embracing
community values ".
Sept 15 2000 Board of Counly Commissioners
Orange County EDCATission
Our purpose is to make Orange County a smart, innovative place — a great place in which to live and
work. We encourage public - private investments to provide jobs for county residents and to increase the
non - residential tax base. Through these investments, we enhance the financial well -being and quality of
life of county residents, and the ability of their local governments to provide high - quality services.
Investing in Innovation Orange County Economic Develop nt Commissim Ffve-YearStrategic Plan 20062010
Interim CoruttpMrnmgerClifton 'sAsressment
The county needs a comprehensive approach to economic development. There is no uniform strategy in
place. Staff issues result from attempting to 'sell' economic diversity and development as important
without a clear understanding of what ED is in Orange County. Beyond general conversation in support
of ED as a priority limited effort or investment has evolved in support of unidentified goals. ...Without
having a clear strategy, ED will continue to be a less effective investment of resources with limited
results
Auaust 2009
Business Tip Front the Amish
[Businesses] will tell you what they want and how to sell it, if you listen. You "listen" in different ways:
by scrutinizing sales statistics, by reading news and industry publications, and by old- fashioned asking.
You may have to put aside your ego."
Borrowed from Erik Wesner. Success Made Simple An lnside Look at My Amish Businesses Thrive
ilPage
Table of Contents
Introduction ................................................................ ............................... 1
Summary of Recommendations ......................................................................... ..............................1
The EDC's Research Rationale and Key Data Sources .................................... ..............................1
The Orange County Paradox ......................................... ............................... 2
Facing Our Challenges .................................................. ..............................4
Current Trends in Business Needs ............................... ............................... 5
Entrepreneur and Small Business Needs .......................................................... ..............................6
Supporting Access to Capital ............................................................................. ..............................7
Lowering Site Selection Risk ............................................................................. ..............................7
The Role of Incentives in Economic Development ............................................ ..............................9
Meeting Business Needs: A Look at State and Regional Economic
Development ................................................................ ...............................
9
StatePriorities .................................................................................................... ..............................9
Orange County and the RTRP Advantage ........................................................ .............................10
The Four Pillars of Regional Economic Competitiveness ................................. .............................11
Understanding Industry Clusters and the Opportunities for Orange Countyii
Green Economy Business Growth ............... ................ -- .............. ......................................... :......
11
E- Learning, Digital Gaming, and Training Innovation ....................................... .............................12
Reality Check (Regional Population and Job Growth) ...................................... .............................12
Leveraging Opportunity: The Role of Local Government in Economic
Development .............................................................. ...............................
12
County -Level Economic Development Best Practices Detail .......................15
AlamanceCounty .............................................................................................. .............................15
ChathamCounty ............................................................................................... .............................16
DurhamCounty ................................................................................................. .............................16
WakeCounty ..................................................................................................... .............................17
Adapting Accepted Practices and a Data - Driven Programmatic Approach to
Economic Development ............................................... .............................18
The First Leg: Infrastructure .............................................................................. .............................18
The Second Leg: Economic Development Toolkit Tailored to Current Market Conditions ..........19
The Third Leg: Current Data, Analysis, and Knowledge ................................. ...............................
20
Conclusion ................................................................. ...............................
20
Appendix I. Research Scope Requested of UNC DCRP Interns ................... 22
Appendix IL The Role of Research Universities in Industry Cluster
Development .............................................................. ............................... 24
Appendix III. Comparative Funding of County Economic Development .... 25
ilPage
Appendix IV. Incentive Programs for Businesses Locating /Growing in
Durham City and County .............................................. .............................40
FinancingOptions and Resources ........................................................................ .............................40
Environmental and Historical Assistance .............................................................. .............................42
Appendix V. Wake County Business Investment Grant Policy ...................
44
Cary..................................................................................................................... ...............................
45
Fuquay -Va rina ..................................................................................................... ...............................
46
Garner.................................................................................................................. ...............................
47
Knightdale ............................................................................................................ ...............................
51
Morrisville............................................................................................................. ...............................
53
Wendell................................................................................................................ ...............................
55
ZebuIon ................................................................................................................ ...............................
60
Appendix VI. Chatham County and Siler City Incentives Policies ..............
62
Appendix VII. Alamance Incentives Policies ............... ...............................
68
City Of Burlington Economic Development Incentive Policy ................................. .............................68
Appendix VIII. Selected UNC Student Intern Papers .. ...............................
70
Part A— Analysis of Orange County's Site Selection Attributes, Ashley Yingling ..... .............................70
Part B — From Economic Base to Economic "Basin ": Keeping UNC Ideas Here and Case Study, Ben
Houck....................................................................................................................... ...............................
85
Part C —Tax Increment Financing and other Development Financing Tools to grow the tax base of
Orange County, North Carolina, Michael Levengood ................................................ .............................99
Part D — Possible Metrics for an Economic Development Goal Statement, Sarah Satinsky ...............111
Part E — Structuring Economic Development, Megan Johnson ............................... ............................220
Part F — US 70 /Cornelius Street Corridor: Market Study and Development Opportunities Report, Aaron
Nousaine, Dana Archer - Rosenthal, Jamaal Green, and Amanda Campbell ........... ............................153
Appendix IX. North Carolina Certified Site Program ............................... 239
u I P age __.. _... _...
Introduction
The purpose of this paper is to provide context and background information elaborating the rationale,
process, and data which have led the Orange County Economic Development Commission (EDC) to
recommend a multi -year programmatic implementation plan that focuses on overcoming barriers
discouraging existing businesses and start -ups from remaining in the county and preventing employers of
commuter residents from corning into the County. hi addition, this paper seeks to describe the economic
development environment and competitive landscape largely from the point of view of entrepreneurs,
CEOs, boards of directors, and site selection specialists responsible for choosing where they will start,
grow, expand, and (re)locate their businesses.
Summary of Recommendations
Building on the foundation laid by Investing in Innovation, the EDC recommends that the Board of
County Commissioners (BOCC) finance in its entirety a comprehensive strategy encompassing a three -
pronged approach addressing the development of physical locations for entrepreneurial and established
businesses to locate and grow for years to come; tools needed to nurture local entrepreneurs and start -ups
as well as to attract and retain established businesses; as well as information and knowledge needed to
support data-driven decision - making. All recommendations are designed to open doors of opportunity by
targeting specific needs voiced by business and economic development professionals. By addressing these
key needs, we expect to increase the number of UNC spin-offs locating in the County, to increase the
County's ability to attract and retain 10 — 100 employee companies as well as the ability to attract
investment in existing Orange County businesses; all of which will increase resident wealth and
commercial tax revenues in a way that also fosters employer- sponsored benefits and higher wages for
workers of all education and skill levels on a long -term basis.
The EDC's Research Rationale and Key Data Sources
Building on Orange County's Comprehensive Plan 2030's Objective 1.8 to "explore policies to use in
attracting and encouraging development of companies and enterprises that will build and expand upon
the County's economic base ", the EDC examined economic development through the eyes of economic
development professionals, potential investors, and regional experts. As part of this effort, the EDC
sought to learn more about the concerns of business from its perspective. In addition, we sought
information about the economic development strategies, policies, and tactics practiced in our region,
particularly those practiced in sunrounding counties.
We began by examining the Research Triangle Regional Partnership's (RTRP's) strategic plan for several
critical reasons, with the first one being that RTRP is considered . internationally to be a best- in-class
economic development organizations having received the US Commerce Department's Regional
Competitiveness Excellence in Economic Development Award for sound, research - based, market driven
economic development. Second, RTRP leadership and strategic piarmers consist of the region's leading
citizens representing business, academia, and government. It routinely funds and commissions detailed
economic development - related research and analysis well beyond the capabilities of Orange County. The
strength of RTRP's I 1 clusters overwhelmingly attract business and residents from around the globe, with
many of these residents landing in Orange County. Lastly, RTRP is the primary arm by which state
funding and resources flow particularly that which is managed by the NC Department of Commerce.
Because Orange County also is on the edge of and impacted by the Piedmont- Triad's economic
development strategies l the EDC also included this region's vision plan as a relevant reference document.
Jonathan Q. Morgan's research and recent publications, the October 2009 edition of the North Carolina
' Assistant Professor of Public Administration and Government, University of North Caolina. Prior to that, he worked for Regional Technology
Strategies, Inc., an economic and workforce development consulting firm located in CarrboroChapel Hill. He has also served as director of
economic policy and research for the NC Department of Commerce, as well as research and policy director for the NC Institute of Minority
Economic Development. Currently Morgan serves as course director for the annual Basic Economic Development Course. His research has
iIPage
Economic Developers Association's Economic Development Handbook, the June 2009 North Carolina
survey, The Role of Local Government in Economic Development, and his November 14, 2009
presentation to the BOCC, also served as primary source material for best practices. Other sources
included leading trade publications for entrepreneurs as well as economic development trade publications,
INC., Entrepreneur, and Fast Company served as resources for tracking key issues in the
entrepreneur /small business arena, while Site Selection and Trade and Lndustry Development were useful
in tracking key issues for site selection specialists, economic development professionals, and relocation
specialists for businesses of 50+ employees. Insight into local markets was gained from local Chambers
of Commerce in Alamance, Chatham, Durham, Orange, and Wake counties as well as the North Carolina
Department of Commerce, Research Triangle Regional Partnership (RTRP) and Piedmont -Triad
Partnership, among others. This cache was augmented by information shared by regional economic
development professionals and site selection specialists.
Lastly, the EDC utilized various resources housed within UNC. In addition to tapping into the Carolina
Entrepreneurial Institute, School of Government, the Institute for the Enviromnent, and the Center for
Competitive Economies, the EDC enlisted the help of Dr. Meenu Tewari2, Associate Professor of UNC's
Department of City and Regional Planning (DCRP)a and students from the Urban and Regional
Development Seminar° (PL773) (Appendix D. Based on this research, along with additional information
gathered last year, the EDC identified a critical path for the County to improve its fiscal prospects. The
rationale for our recommendations takes into account the current economic development environment;
standard practices engaged by commercial site selection professionals, property owners, and surrounding
regional government entities; and the political and cultural environment in Orange County, all of which
are summarized in subsequent sections.
The Orange Count r Porradox
The Triangle and its constituent communities pride themselves in their
ability to attract, grow, and retain businesses. Based on industry standard
criteria, the area continues to receive numerous accolades highlighting the
region's business - friendly policies and regulations, entrepreneurial culture,
highly skilled and educated workforce, educational infrastructure, and
overall quality of life. Supporting these attributes is a robust collection of
industry clusters. Additional discussion summarizing the inter - relatedness
of North Carolina's universities and the growth of industry clusters is
included in Appendix 11.
Whereas many metropolitan areas are known for one to three or four
industry clusters, the Triangle has become a center for I I primary clusters
and numerous sub - clusters— largely due to the collaborative efforts of
Research Triangle Park (RTP) and RTRP over the past 20+ years.
Reflecting the strength of RTP, the region was the recipient of
Primary RTRP Regional
Industry Clusters
• Advanced Gaming and
E- Learning
• Advanced Medical Core
• Agricultural Biotechnology
• Analytical Instrumentation
• Biological Agents /Infectious
Diseases
• Clean /Green Technologies
• Defense Technologies
• Informatics
• Nonoscole Technologies
• Pervasive Computing
• Pharmaceuticals
appeared in the International Journal of Economic Development and Popular Government. He is a member of the NC Economic Developers
Association, ACCRA -The Council for Community and Economic Research, and the International Economic Development Council. Morgan
holds a BA from the University of Virginia, an MPA from Clark Atlanta University, and a PhD in public administration from North Carolina State
University.
2 Ph.D. Massachusetts Institute of Technology (Economic Development, International and Regional Planning), M.C.P. and S.M. Arch.S.
Massachusetts Institute of Technology (Economic Development, Housing and Human Settlements), B. Arch. School of Planning and
Architecture, New Delhi. Massachusetts Institute of Technology continues to be rated as being the countrys top graduate planning and
economic development program by Planetizen: Urban Planning, Design and Development Network.
s Rated in 2009 as being the third best graduate planning programs in the United States by Planetizen
4 Course Description: Fundamental concepts and theories applied, to local economic development including growth, trade, product - cycle,
flexible specialization and entrepreneurship theories. Urban and regional development issues addressed in the North American, South
American, European or South Asian contexts.
21 Page
$1,900,000,000 in private investment and 10,000 new jobs in 2009, alone5. These investment gains were
over and above research funding awarded to the three anchor universities. Orange County's share was $0
and negative net job growth. The 2009 bonanza was preceded in 2008 by $1.7 billion in capital
investment from new and expanding firms, adding 6,535 new jobs5. Of this bounty, Durham and Wake,
alone, added $762 million and $165 million respectively. Orange County's share was again $0 in private
investment and zero new jobs.
Orange County is fortunate to be home to one of RTP's three anchor research institutions, the University
of North Carolina, which itself is home to more than 100 centers, institutes, labs, and other offices related
to research. The recipient of $716,000,000 research funding in 2009, UNC is a powerful economic
engine highly accessible to the region's core and ring counties. The source of this funding is largely from
the National Institutes of Health and the National Science Foundation, with the School of Medicine
accounting for 48.8% of the funding. Other UNC units receiving major funding included the Gillings
School of Public Health ($97,000,000) and the Office of Business and Economic Development
($133,000,000)$. As a result, spin -off technology, business, and associated entrepreneurs tend to be
heavily oriented towards life sciences and are highly valued by numerous jurisdictions in the Triangle and
Triad regions.
One of the benefits of UNC's deep bench of research and technology transfer opportunities is the
presence of numerous entrepreneurs living in Orange County. With 6% of the Orange County workforce
being entrepreneurs, Chapel Hill has been cited as one of the United States' top 10 areas for start-
ups —yet very few of these businesses look to Orange County for growth or expansion, even though the
County is home to many of the Triangle's CEOs and C -suite executives (CEOs, COOS, CFOs, CIOs,
etc.). Moreover, because of UNC's and RTP's global stature, a significant portion of Orange County's
population is well- educated, highly- skilled and very savvy in taking advantage of market
opportunities —maven as a high percentage of their employers are located outside of the county. In other
parts of the country, counties with Orange County's attributes are home to significant commercial
research and development representing a plethora of home -grown businesses ranging from start -up to
world headquarters and serving as a magnet for workers frun other counties.
However, even as UNC and RTP continues to attract entrepreneurs and incoming businesses, private
investment and the commensurate jobs and wealth building bypass Orange County. The dearth of 10-
100+ person private businesses linked to RTP clusters mean that these workers lack opportunities for
comparable work, benefits, and professional opportunities in Orange County; thus contributing to
unintended, unpleasant consequences, ranging from the economic to the environment, such as lost tax
revenues and increased traffic and auto emissions. Moreover, because the majority of private employers
in Orange County have fewer than 50 employees, they slip under the radar for federally mandated
benefits, such as the Family and Medical Leave Act and are too small to be able to offer benefits
competitive with those of larger companies.
Despite being in the top tier of North Carolina's counties, the state of Orange County's commercial
infrastructure lags behind that of many of the state's poorest counties. Whereas permitting timelines
across the region can be measured in days— with 90 day turnaround times being common, Orange
County stands alone in requiring businesses to wait months and in some cases years before their
development plans receive approval. Past regulatory and economic development policies have forestalled
development in the county by preventing the development of business- and shovel -ready facilities and
sites available for commercial enterprise. Moreover, the majority of county land has been reserved for
residential, government/academic, or conservation, leaving little land available for business activity.
`Megan Johnson, "Structuring Economic Development'
8 httrr //nncnaws iinr. edtilmntentlyiaw/2802 /68
31Page
Concentrated in the three EDDs, the area available for commercial development land is less than 2,100
acres —which is further reduced by current regulations requiring a portion of the EDDs to be set aside for
non - commercial use, including buffers. Moreover, at present, most of this acreage remains undeveloped
and thus, ineligible for the majority of site selection short lists.
As rooted by Frank Clifton, Orange County Manager, in his 10 September 2009 report to the BOCC,
`S,ithin Orange County, economic development has a differing meaning than elsewhere in North
Carolina. [Orange County's,( land use regulations, utility extension policies and a variety of other issues
impact `traditional' economic development [much differently than] elsewhere." In addition to
disregarding standard economic development policies and practices, Orange County has expected the
economic development market --site selection specialists, business investors, and local property
owners —to adapt to Orange County preferences rather than Orange County adapting to market demand.
Many businesses that Orange County would like to attract cannot justify selecting Orange County over
other nearby locations whose attributes, such as labor, proximity to universities/RTP, and quality of life,
are considered comparable, but whose turn -key development costs are lower while property taxes and
land costs are higher. As a result, County residents bear the highest tax burden in the region and almost
half our adult residents leave the Comity both for employment and routine commercial transactions.
Facing Our Challenges
This past year saw two economic development milestones highlighting the strength of economic
opportunity in our region — record - breaking new private investment in our region and record - breaking
research funding awarded to UNC. These gains were achieved even as the country and much of the world
remained mired in the Great Recession. In contrast, Orange County, experienced no private investment
growth, net job loss in 2009, and negative budgetary pressures that are not expected to improve in the
near future--despite having one of the state's highest per capita income, being one of the country's top 10
centers for start -up business, and being home both to one of the region's anchor research universities and
to 13% of the region's population.
Three pressures have long weakened Orange County's ability to increase its commercial tax base as wel
as to attract and retain private commercial investment. These pressures include an escalation in
residential building, an escalation of office space lease /purchase costs over that readily available in
neighboring counties, and continued under - development of site -ready buildable acreage. Concurrently,
the gap between Orange County's economic development policies and its sister counties continues to
increase in four critical categories that drive business decision - making, including availability of business-
and shovel -ready locations, regulatory timelines, access to capital, and incentives. As a result, our county
has been unable to actively participate in the commercial market development that is abundant in the
region, especially within the urban core.
In the past, when County coffers were flush and residential tax burdens were less of an issue, the lack of
private- investment and commercial development was the preferred status quo by many. Moreover, many
middle and upper income residents have benefited from the availability of tenured employment offered
through the academic and govermnent sectors, while lower income residents have been able to county on
some of the areas strongest social service networks. However, with the Great Recession affecting both
public and private employers, Orange County residents are feeling the pinch that comes from living in a
county that has designed itself as a bedroom community with few fall -back options for revenue,
employment, or wealth generation available through private investment and commercial development
Fiscal Considerations and Realities
The relatively new status quo for Orange County govermnent is a County which finds itself facing
financial short-falls for the foreseeable future, while also facing community pressure for maintaining high
standards in service delivery, even as the cost —and volume—of delivery rises. Residential property
owners in Orange County continue to bear the brunt of this financial burden, with local property tax rates
41Page
squeezing the County's middle class homeowners. Having reached a limit with property tax increases and
given the state's formula for disbursing sales tax revenue, county government now faces having to choose
between cutting government services, accelerating the trend towards socioeconomic exclusivity of its'
residents, or increasing the county's commercial tax base. Moreover, the lack of available commercial
options continue push a substantial portion of residents out of the county for basic consumer needs while
also pushing our workforce out of the county for lack of available employment options.
In 2006, Orange County funded a study of the cost of County services by Dr. Mitch Renkow, an
economist at NC State. According to his study, Renkow found that 81% of total County tax revenues
were generated from residential property, taxes, with only 17% collected from the County's commercial
tax base. When analyzing revenue contribution and returns on investment, the study found that residential
tax revenues covered only 75% of the cost of services delivered to residential households while tax
revenues from commercial and industrial land users returned a profit of $3.21 for every $1.00 of services
provided to those users. Despite this significant contrast in returns on investment and the massive influx
of private investment into the RTRP region, Orange County's gross commercial tax receipts have steadily
declined since 2006 (Figure 1).
Figure 1. Orange County Commercial Tax Base Trends
Looking at UNC's hometown, Chapel Hill, recently reported data that indicates its 2009 -2010
commercial tax revenue decreased in the last year from 17% of revenues to 15% of collected revenues,
even as University research grant receipts were the highest yet at $700,000,000 +.
As the overall contribution of commercial tax receipts to County revenue declines, County residential
property tax collections continue to be impacted by the Great Recession. Current population growth is 2%
and expected to remain so for the next several years. Job losses have occurred in both the private and
public sectors. Permanent job losses even occurred at the County's two largest employers, UNC- Chapel
Hill and Orange County government. With a current poverty rate of 13.8 %9, demand for services
continues to rise and the cost of services, such as education and healthcare, also continues to increase.
However, with the cost of educational services accounting for half of the County's total budget —and 2/3
of locally-collected taxes1o, less of the County's discretionary income is available to fund these services.
Unless residents are willing to shoulder property tax increases, Orange County must either increase
commercial tax collections or cut county services, including education budgets, well into the future.
Current Trends in Business Needs
Several factors weigh critical regardless of the size or scope of a business. Whether the business is large,
medium, small, or nascent, available business- and shovel -ready space, regulatory requirements, access to
capital, and programs that mitigate site selection risks are key criteria leading to the choice of where to
grow and develop. However, the type and extent of support required to meet the needs of business vary
depending on attributes of the business and its maturity.
Reducing Regulatory Hurdles
Regulatory burden and uncertainty are two environmental elements that both entrepreneurs and
established businesses seek to avoid. Conflicting or poorly understood processes and procedures related to
development and land use lead to extended permitting time and tied up assets, which translates into higher
expenses and reduced profit (or increased losses). Unified Development Ordinances (UDOs) are a
common tool for reducing these barriers. Although UDO development and implementation is a planning
e For Year 2008, US Census Bureau Quick Facts
1014 November 2009 Board of County Commissioners Retreat, cash flow analysis presentation
51Page
function and will not be discussed in depth in this document, the EDC supports Orange County's efforts
in this area as a fundamental building block which must be in place as part of a comprehensive economic
development strategy.
Entrepreneur and Small Business Needs
With local business serving as the backbone of community services and quality of life measures, it is
critical that we continue to support these efforts. Micro - businesses generate 60% to 80% of net new jobs
annually over the last decade both locally and throughout the United States, yet funding and access to
capital continues to be a major hurdle. North Carolina had 173,409 small employers in 2006,
representing 98.1% of the state's employers and 48.6% of its private sector employment. Moreover, the
sectors of particular strength to Orange County -- health care and social assistance industry— accounted
for the majority of these small businesses.
Entrepreneurs have been widely credited with being the source of innovation and invention. However, the
majority of their businesses fail within five years or fewer. Many of those last fewer than two. Because
new businesses lack stable revenue streams and entrepreneurs are limited in resources, their needs span a
wide range depending on a variety of factors. Before the County can meet their needs, it must first
understand that not all entrepreneurs are created equal. W.K. Kellogg Entrepreneurship Development
Systems has defined six different types of entrepreneurs that a comprehensive system must serve.
• Aspiring Entrepreneurs: This class of entrepreneurs are attracted to the idea of creating enterprises,
and includes people of all ages. They differ from the other classes of entrepreneurs in that they may
or may not end up starting, growing, or developing their business and may or may not go on to create
multiple enterprises. Like Survival Entrepreneurs, Aspiring Entrepreneurs tend to require significant
hand - holding, although the survival rate of their ventures is highly unpredictable. The impact of
aspiring entrepreneurs in a community depends on their underlying motivation and success in
launching and maintaining a business.
• Survival Entrepreneurs: This class of entrepreneurs tend to resort to enterprise creation to
supplement their incomes. The number of Survival Entrepreneurs tend to rise during periods of
economic crisis, such as the Great Recession. Like Aspiring Entrepreneurs, Survival Entrepreneurs
tend to be heavy users of a broad range of assistance. Because necessity is the most frequent catalyst
leading to entrepreneurship, Survival Entrepreneurs frequently revert to working as employees after a
period of time. For those who remain self - employed, growth in terms of hiring and overall revenues
remain small and many of the their businesses do not last longer than the entrepreneur's working life
or after his/her death.
Lifestyle entrepreneurs: This class of entrepreneurs create enterprises in order to pursue certain
lifestyles or live in particular communities. Often motivated by social, ideological, or lifestyle
priorities, many of these enterprises either start out as or become non- profit organizations.
Social entrepreneurs: Although similar in nature to Lifestyle Entrepreneurs, Social Entrepreneurs
create and grow enterprises that are primarily for public and community purposes. Like those
founded by Lifestyle Entrepreneurs, it is not unusual for enterprises started by Social Entrepreneurs to
begin or end life as non -profit organizations.
• Growth entrepreneurs (gazelles): These entrepreneurs are motivated to develop and expand their
businesses to create jobs and wealth. Because their enterprises tend to be long- lived, lead to
employment of IOs to 100s of people, and provide a high rate of return for investment, Growth
Entrepreneurs are one of two classes of entrepreneurs heavily recruited by communities seeking to
expand or enhance their economies.
• Serial entrepreneurs: Serial Entrepreneurs go on to create several growth businesses, and because of
their revenue and hiring track records, they like Growh Entrepreneurs, are highly sought by
61Page
communities seeking to enhance their economies. Once successful in one arena, many of these
entrepreneurs end up founding numerous enterprises over the course of their lifetime and often
become sought -out resources for other entrepreneurs.
Because of UNC and RTP, the Orange County entrepreneur comrunity includes healthy populations of
all, although there is a greater proportion of Social, Growth, and Serial Entrepreneurs for an area of its
size.
Supporting Access to Capital
Orange County and the Triangle offer a host of small business resources ranging from business education
to technical assistance programs through local, community college, university, state, federal, and non-
profit organizations. Because their assets are few and their employment base is small, site selection
requirements for entrepreneurs and small business tend to include lower lease rates and flexible leasing
terms as well as access to support resources, such as reception, payroll, and logistics services. However,
regardless of business location, locally or nationally, one of—if not the —top challenges for entrepreneurs
and small businesses is access to capital. This especially is true for service- and knowledge -based start-
ups and small business, which have few, if any, tangible assets to use as collateral.
Although North Carolina is home to several venture capital organizations, most are for later stage
companies, with the percentage of all venture capital designated as start -up or seed is below the national
average. Moreover, even though VC funding is increasing slowing, overall, the state's share of national
venture capital is in decline11. Although SBIR and STTR awards are increasing, many entrepreneurs and
small business owners end up financing their businesses through personal means, such as credit cards,
401(k) and IRA funds, and home equity loans, leaving them with limited ability to raise the capital they
need to survive. Even asset -rich start-ups/small businesses such as light manufacturing or research
laboratories struggle with financing, especially when preparing for growth and expansion. Just -in -time
build -up and inventory management practices have become the norm. Rapidly changing technology,
market conditions, and consumer behavior means that business cannot afford to invest heavily in
inventory or make poor choices in facilities,
For these reasons, flexible small business and micro-business loan funds capable of serving such a
population are one of the most powerful tools in fostering local business development. Loan fund
decision - makers and administrators often know the individuals involved and have greater insight into
future potential. In addition, the lending/repayment process tends to strengthen ties between the business
and the surrounding community.
Lowering Site Selection Risk
Equally important to a business' success is selecting where to locate, whether moving from the kitchen
table to free- standing commercial space or expanding existing operations. No decision is as risky to
business as site selection. Requiring significant investment in resources and opportunity costs, locating a
business in the wrong location is as deadly as it is beneficial when an optimal site is chosen.
Large or small, businesses throughout the country consistently cite the same criteria used when
determining where to expand. The larger the business, the more they view these criteria as being
important. Although the specific criteria have remained unchanged over the past 10 years, the relative
importance of each has varied from year to year. Figure 2 focuses on the priorities cited by site selection
specialists over the past three year s12.
112009 North Carolina Economic Index
12 Site Selection survey October 2007, October 2008, and October 2009
71Page
Figure 2. Top Factors in Site Selection Decisions
Site decisions are particularly critical for companies relocating their headquarters. Expenditures related to
expansion and relocation have long - lasting financial impact spanning decades. Such moves are highly
disruptive to employees, customers, suppliers, and stockholders and entail even more costs than "simple"
expansions. In addition to costs associated with meeting regulatory requirements and purchasing new
land / buildings /equipment, relocations also entail costs associated with
employee relocations. Despite the pressures to remain in a particular
location, companies are relocating more than ever. When surveyed
as to why, CEOs cite several factors that make an existing location
so undesirable that relocation becomes necessary. 13 These factors
include:
Growing inability to attract workers to the current location
Insufficient access to banks /investment firms, law firms, cultural
amenities, prestigious colleges and universities, and spousal
employement opportunities
Inadequate domestic and international air service
Burdensome laws, rules, regulations, taxes, and /or restrictions
• Unfavorable community image or reputation
Lack of expansion/consolidation space available
When reviewing this list, it is easy to understand why organizations
are choosing the Triangle, but not Orange County as potential sites
for relocation. With fewer entrepreneurs and businesses in the
market for sites than desirable sites available, competition for these
entrepreneurs and businesses has become fierce over the past 20
years. As a result, a jurisdiction must meet all of the criteria just to
be considered. With so many potential sites available from which to
choose, jurisdictions failing to meet business site selection
requirements are left unable to compete.
13 Trade and Commerce Special Report, March/Apo] 2010
8 1 P a g e
The Importance of Attracting and
Retaining Established Business
Generally a business does not begin
hiring as a function of operations until
it matures enough to grow past the
start-up phase. Although start-ups fuel
creativity and are responsible for
serving as a spring -board for new ideas
and services, their ability to hire is
limited to their ability to grow. It isn't
until they are established enough to
expand and maintain growth that
businesses can begin to take on more
employees and offer benefits. With half
of Orange County residents currently
commuting for work, the County will
need to attract and retain expanding
businesses in order to be able to
increase private employment and
decrease commuter rates. Because
people tend to shop either where they
live or work, Orange County is more
likely to retain consumer spending and
commensurate tax revenues simply by
increasing the number of residents who
work in- County.
re
ord
'e
Transportation infrastructure
Ease of permitting and regulatory
Availability of desired workforce
Existing workforce skills
procedures
skills
State and local tax scheme
Transportation infrastructure
Ease of permitting and regulatory
Utility infrastructure
Existing workforce skills
procedures
Land /building prices and supply
State and local tax scheme
State and local tax scheme
Ease of permitting and regulatory
Utility infrastructure
Land /building prices and supply
procedures
Land /building prices and supply
Availability of incentives
Flexibility of incentives programs
Workers' comp rates
Transportation infrastructure
Access to higher education
Flexibility of incentives programs
State and local economic
development strategy
resources
Higher education resources
Availability of incentives
Availability of incentives
Flexibility of incentives programs
State economic development
Higher education programs
strategy
Union activity
Site decisions are particularly critical for companies relocating their headquarters. Expenditures related to
expansion and relocation have long - lasting financial impact spanning decades. Such moves are highly
disruptive to employees, customers, suppliers, and stockholders and entail even more costs than "simple"
expansions. In addition to costs associated with meeting regulatory requirements and purchasing new
land / buildings /equipment, relocations also entail costs associated with
employee relocations. Despite the pressures to remain in a particular
location, companies are relocating more than ever. When surveyed
as to why, CEOs cite several factors that make an existing location
so undesirable that relocation becomes necessary. 13 These factors
include:
Growing inability to attract workers to the current location
Insufficient access to banks /investment firms, law firms, cultural
amenities, prestigious colleges and universities, and spousal
employement opportunities
Inadequate domestic and international air service
Burdensome laws, rules, regulations, taxes, and /or restrictions
• Unfavorable community image or reputation
Lack of expansion/consolidation space available
When reviewing this list, it is easy to understand why organizations
are choosing the Triangle, but not Orange County as potential sites
for relocation. With fewer entrepreneurs and businesses in the
market for sites than desirable sites available, competition for these
entrepreneurs and businesses has become fierce over the past 20
years. As a result, a jurisdiction must meet all of the criteria just to
be considered. With so many potential sites available from which to
choose, jurisdictions failing to meet business site selection
requirements are left unable to compete.
13 Trade and Commerce Special Report, March/Apo] 2010
8 1 P a g e
The Importance of Attracting and
Retaining Established Business
Generally a business does not begin
hiring as a function of operations until
it matures enough to grow past the
start-up phase. Although start-ups fuel
creativity and are responsible for
serving as a spring -board for new ideas
and services, their ability to hire is
limited to their ability to grow. It isn't
until they are established enough to
expand and maintain growth that
businesses can begin to take on more
employees and offer benefits. With half
of Orange County residents currently
commuting for work, the County will
need to attract and retain expanding
businesses in order to be able to
increase private employment and
decrease commuter rates. Because
people tend to shop either where they
live or work, Orange County is more
likely to retain consumer spending and
commensurate tax revenues simply by
increasing the number of residents who
work in- County.
The Role of Incentives in Economic Development
Incentives are a necessary tool for jurisdictions and economic development professionals. Whereas access
to capital is key for entrepreneurs and start -ups, incentives play a significant role in the ability to attract
and retain established businesses, which are the source of the majority of job and wealth creation in a
community (refer to sidebar). Whether they are in the form of rebates, tax abatements, cash grants, free
land/facilities, or infrastructure development, competition has led to the rising importance of incentives as
a standard economic development tool. Although incentives are offered by just under 50% of local and
county governments state -wide, 100% of Orange County's closest competitors have effectively use them
to attract and retain business 14. It is safe to say that few in government like the practice; however,
jurisdictions such as Orange County that fail to offer incentives are bypassed before most companies
compile their short lists of relocation or expansion sites for consideration. Therefore, it is important for
Orange County policy- makers to understand the forces that drive business to depend on incentives as a
key decision criteria. So critical are incentives that the process of and activities associated with
identifying and maximizing incentives is formalized as a C -suite responsibility or as a full- time position.
On average, established businesses are finding margins shrinking and costs of operations ever-increasing.
Competition from low -cost farm- or off - shored locations have commoditized a range of goods and
services which used to be considered high value. As a result of commoditization, price and convenience
drive sales. With fewer resources available, businesses find themselves hiring and operating in just -in-
time mode, with cost containment and expense management serving as primary strategies in maintaining
overall business health.
Whether relocating or expanding, the cost of establishing new facilities affects the bottom -line -not only in
terms of direct costs but also in opportunity costs due to lost sales, revenues, and access to market. As a
result, businesses look for and consider every option for reducing these costs and depending on its needs
and availability of sites that fit its needs. Although incentives will not make a poor choice desirable, they
frequently serve as differentiators between competing sites whose attributes are comparable in the eyes of
the business and/or its shareholders. In addition, just as small business loans tend to increase ties between
an entrepreneur and its lending community, incentives tend to increase the ties of the recipient business to
the area.
Acknowledging the Risk
Just as bad news travels faster than good, horror stories of incentives gone wrong garner attention
whenever they occur. Although the majority of incentive awards go un- publicized and lead to long -term
business growth, some simply go south for a variety of reasons, including over- bidding, the lack of claw -
back provisions, the lack of structured award process and decision - making, changing market conditions,
and declining health of the recipient business. Therefore, it is incumbent for decision - makers to
understand the opportunity cost of losing employment, investment, and tax revenue gains up -firont over
the possible risk of losing those gains at some point in the future.
Meeting Business Needs: A Look a! State and Regional Economic Development
The next sections address the current economic development environment at the state and regional level,
with an eye towards strategies currently driving economic activity.
State Priorities
The state of North Carolina has held Site Selection's top ranking in best business climate in the country
for eight of the past nine years. To maintain this level of competitiveness, North Carolina, through the
Department of Commerce and the regional economic development partnerships has focused on three
14 Examples of incentive usage in Alamance, Chatham, Durham, and Wake counties are included in the County-Level Economic Development
Best Practices Detail section, with copies of area incentive policies included as Appendices.
glPage
strategic initiatives 15:
Keeping North Carolina competitive by actively recruiting and encouraging the expansion of high -
value, technologically advanced industries and companies. We target companies considered "high -
tech" in industries such as telecommunications and biotechnology, and companies that apply new and
irmovative technology to remain competitive in traditional industries, such as textiles and furniture.
Service-oriented industries such as healthcare, education, and financial services are also core
components of the state's economy.
Increasing economic opportunities for our state in a global economy by ensuring that North
Carolina is recognized throughout the world as an attractive location for growing businesses, for the
high quality of its workforce, and for its appeal as a tourism, film, and sports development
destination.
Improving economic opportunities for all of our citizens through programs targeted to people and
places not currently enjoying economic prosperity.
Implementation of North Carolina's economic development strategic intentions has been structured by
prioritizing industry clusters at both the state and regional level through the regional partnerships
(Figure 3).
Figure 3. North Carolina Target Industry Clusters by Region
...........__ ........... .......
'mm TdRtu Fo nIISTRYsFarmns
Sector
N.C. Dept of Commerce
RMeareh Tnangie
Char'<ite
Soonest
Northeast
Eastern
Ndmont
Ad,7MWWeat
Aerospace
■
■
■
®
4
Automotive
■
■
■
■
4
eiotech/Pharma /Life Sdeme
■
■
■
■
■
■
®
7
Chemicals /Plastics/Rubber
■
®
®
3
Furnishings
■
■
®
3
Information &Communications (ICT)
IN
■
■
®
4
Military/Defense
■
■
■
■
■
®
6
TedIes
■
■
2
international
■
r
Nawkole Technologies
■
I
I
i
roSIAIm &Distribution
■
■
®
®
4
Alternative Energy (Environmental)
■
■
■
3
Fjmncepnsurance
■
1
Marine Trades /Boat BuIULng
■
®
■
3
Food Processing /Agd-induny
■
■
®
3
Meta[v IdRg
■
®
1
Tourism &Entertainment
■
■
■
®
4
Advanced Materials
This state focus on the automotive, biotech/pharma/life science, information and communications,
nanoscale technologies, finance /insurance in the RTRP region is being implemented via well- funded
marketing and recruitment activities on an on -going basis. Because Orange County borders the Piedmont -
Triad Regional Partnership, we can expect residents on our western border to be impacted by state and
regional marketing and recruiting efforts to also attract aerospace, chemicals /plastics /rubber, furniture,
logistics and distribution, and food processing/agri4ndustry development.
Orange County and the RTRP Advantage
Orange County is one of the three urban core counties that comprise the heart of the RTRP, one of seven
economic development districts established by the State in 1994 as a mechanism for targeting, recruiting,
and retaining business into the region as well as for attracting federal economic development - related
resources. Chapel Hill's and Orange County's involvement with RTRP began in 1990 with the formation
of the Raleigh- Durham Association (RDA), which was created by community leaders from Raleigh,
15 North Carolina Department of Commerce website, hfro•Ihmmv nccommcme rom(Pn /AbnntDDCI
ioIPage
Durham and Chapel Hill who decided to market their communities together. Taking advantage of the
strength of Research Triangle Park, RTRP's economic development strategic plan and implementation
continues to serve as a best -in -class model for economic development regions nationally as well as world-
wide.
The Four Pillars of Regional Economic Competitiveness
The thrust of RTRP's economic development strategy_ is the four pillars of regional economic
competitivenessta:
Intellectual interaction (university - company cross - fertilization, company-company association,
entrepreneur - institution interaction, individual - individual connection).
Attractiveness to companies (workforce, business climate [regulation, taxes, incentives,
predictability, support services], physical size, idea enviromnent (universities, research, innovation],
economic dynamism, financial climate [capital, financing])
• Attractiveness to individuals (quality of life [cultural, recreational, convenience], economic
dynamism [job growth, income growth, strength, stability], climate /geography, cost of living, and
quality and availability of social interaction)
• Reputation /brand (desirability of park/regional address, attractiveness of park association, name
recognition, marketing prowess, and credibility of area as a research and technology leader)
A commitment by area governments to promote all four pillars, along with robust economic development
planning and implementation have resulted in the area's continued high ranking across the board.
Understanding Industry Clusters and the Opportunities for Orange Counlp
Whereas RTRP has targeted and continues to target the development of its clusters (listed on page 2) in
the urban core (Wake, Durham, and Orange Counties), over the next five years, the North Carolina
Department of Commerce through the RTRP vehicle also is promoting the growth of these clusters across
the other 10 constituent counties t7. Of these 1 I clusters, five are being emphasized by RTRP as key
initiatives, three of which target RTP's urban core, including Orange County 18.
Green Economy Business Growth
RTP attraction of jobs and business opportunities associated with alternative energies, environmental
technologies, and green enterprises
The Green Economy
Relocation and expansion of existing business is highly influenced by an area's energy infrastructure,
particularly in the areas of overall availability as well as gross and net energy costs. Although North
Carolina historically has offered a highly competitive energy package, neighboring states now offer
lower- priced energy than North Carolina. Fortunately, our state is home to significant centers of energy
and power research and home to the headquarters of two of the country's largest energy providers, Duke
Energy and Progress Energy —both of whom have established smart grid and alternative energy initiatives
and projects. In addition, both are recipients of $200MM+ smart grid project grants19.
According to a 2009 Pew Center on the States report, North Carolina ranks as one of the top states in
growing clean energy jobs, with 1,700 clean energy businesses accounting for more than 17,000 jobs in
2007. This builds on more than $82.5 million in venture capital invested in North Carolina clean energy
16 Source: IBM Consulting Services for Research Triangle Foundation of North Carolina report
17The Shape of Things to Come, Regional Economic Development Strategy 2009 -2014
16 The State of the Research Triangle Region 2009, RTI and RTRP. The other key initiatives include Triangle North (Franklin, Granville,
Warren, Vance counties) and defense - related economic development
19 Site Selection, January 2010
u1Page
economy jobs between 2006 and 200720. Supported by the North Carolina Department of Commerce, the
state is positioned to benefit from these green initiatives. Moreover, opportunities in promoting green -
related economic development abound for Orange County. In addition to a growing solar energy sector,
RTP is home to numerous companies — ranging from large and small; global to local— engaged in green
enterprise, embracing green practices via LEED certification or other environment- friendly initiatives,
and /or implementing green- related policies. Many of these companies are at the forefront of innovation
and change. In addition, because pharmaceutical, nutraceutical, and biotechnology companies tend to be
earl), adopters of energy conservation and renewable energy policies21, the region's established life
sciences cluster combined with the emerging clean/green technologies cluster represent significant
economic development opportunity for jurisdictions attuned to the needs of these sectors' constituent
businesses.
E- Learning, Digital Gaming, and Training Innovation
Harnessing additional job - creation and business - growth opportunities associated with new technologies
and techniques in digital games and learning environments useful in a wide spectrum of adult education
and training.
The Digital Economy
RTP is home to several leading R &D centers in digital gaining, including N.C. State University's Digital
Games Research Center, Wake Technical Community College's Simulation and Game Development Lab,
and UNC's Department of Computer Science's Graphics and Analysis Research. As a result, RTP is
home to 30+ gaming - related companies, which account for 1000+ jobs, where average salaries exceed
$80K. Federal funding for R &D in this arena is available via the National Science Foundation and the
Departments of Defense, Energy, and Education, particularly in the areas of artificial intelligence,
gaming, graphics and visualization, and education teclnology22. Although Wake County has taken the
lead on marketing the region as a top national player, Orange County has the opportunity to retain start-
ups emanating from UNC with the potential of generating strong growth and revenue.
Reality Check (Regional Population and Job Growth)
Reality Check encompasses expectations that the region will need to acconnnodate more than I million
people and 700,000 additional jobs over the next 20 years.
Managing Residential Growth
Orange County has nurtured the development of many quality of life factors that attract residents. In
addition, with the Orange County Visitors Bureau expanding an already successful marketing program to
reach a wider audience, it is likely that more will take up residence in the County. If current patterns
persist, Orange Count}, could see the volume of rural residents grow significantly, placing even greater
burden on County first responder and school systems. Without increased economic development and
associated increases in the commercial tax base, Orange County's commuter rates will increase, as well as
the associated impacts, and, so will our ever - increasing reliance on residential property taxes.
Leveraging Opportunity: The Role ofLocal Government in Economic Development
Both public and private sectors acknowledge that local governments have a role to play in economic
development and the manner and extent of that role significantly impacts private investment decisions. As
articulated in the North Carolina Economic Developers Associated Economic Development Handbook,
the role of local government is summarized as follows:
20hfo /hA rn mmer comten1Pr R IPr R lea 1 6152009PeaepQdShowsN CaLeadednGreeoEconomyhtm
2' Trade and Industry Development, January/February 2010
22 Extension Operations Council Meeting Minutes, October 10, 2007
121Page
• Support professional development organizations: Provide financial resources necessary at the
state, regional, and local levels. Examples of costs incurred by economic development organizations
are administration, staff, travel, technology, client recruitment, research, advertisinghnarketing, and
office space.
• Invest in Infrastructure: Water, sewer, natural gas, electricity, telecommunications including high-
speed internet and digital wireless, rail, industrial parks, and highways
• Provide incentives
Help existing industries
Building a competitive environment: Infrastructure, industrial parks, shell buildings, and financial
incentives. Other activities include promoting workforce development, supporting quality education
from kindergarten through post - secondary levels, maintaining reasonable tax and utility rates, and
instituting effective planning and permitting processes. A competitive business climate also entails
having a regulatory environment that is not burdensome and assists firms in complying with all
necessary regulations.
Protecting the public investment: This starts by making informed decisions about economic
development based on sound planning and analysis described below. Organizations can be held
accountable through representation on governing boards, reporting requirements, performance
measurement, and program evaluation. Several mechanisms exist to help state and local governments
avoid paying too much in the form of incentives for too little in return. These include some
safeguards already adopted in North Carolina, such as:
— setting formal eligibility guidelines;
— requiring cost - benefit analysis;
— tying incentives to company performance;
— using claw -back provisions;
— targeting distressed areas; and
— maintaining wage /job quality standards.
Popular Economic Development Strategies and Tools
According to a 2009 report published by the UNC School of Government and specific economic
development organizations, a range of strategies and tools are actively practiced across North Carolina,
including in the jurisdictions surrounding Orange County. A summary of these activities and supporting
economic development investment budgets are summarized in (Figure 4). Additional funding data is
included as Appendix III and Appendix VIII, Part E.
Figure 4. Economic Development Tools by Strategy and Investment Budget Comparison
23 The Role of Local Government in Economic Development Survey Findings from North Carolina, Jonathan Q. Morgan, UNC School of
Government, June 2009. Actual survey conducted in 2006. N = 217 res np.nddents (150 cities 67 counties /110 wl pzulation <10000 107 w/
ulalion >10
"Based on website information of respective lead economic development organizations
131 Page
26 Amount unknown
26 Amount unknown
27 Depleted
141 Page
Partnership with
59.4%
Chamber
Website/Community
57.1%
limited
✓
limited
Profile
Building and Sites
42.4%
✓
limited
Inventory
Provide High Quality
41.9%
✓
of Life
Cash Grant Incentives
41.5%
B us ness hki"66,-imd X RIM"
Existing industry calls
48.4%
unk
✓
V/
and visits
Business networking
30.9%
V,
Cash grant incentives
29.0%-
V/
Partnering with other
28.6%
✓
V/
local governments
Worker training
28.6%
✓
V/
assistance
Partnering with non-
28.6%
✓
✓
gov't entities
Surveys of local
24.9%
unk
business
"Entrepreneurship / Business Crgaifon
Small business
27.2%
State,
State,
State.
State,
development center
Community
Community
Community
Community
Community
College
College
College,
College,
College,
University
University
University
Business incubator
15.7%
unk
unk
✓
✓
Marketing assistance
15.7%
limited
✓
✓
✓
limited
Revolving loan fund
14.7%
unk
$250,000
/25
✓26
$75.00027
Property
11.5%
✓
✓
limited
improvement grants
Other
11.1%
unk
unk
unk
unk
Microenterprise
9.2%
unk
unk
unk
unk
program
26 Amount unknown
26 Amount unknown
27 Depleted
141 Page
When comparing economic development tool chests, the five counties are similar except for two major
differences, funding levels supporting economic development and the availability of investment
assistance in the form of cash grant incentives. When overlaying recent business retention and attraction
activity, the impact of these tools become apparent.
County,- Level Economic Development Best Practices Detail
The following sections delve into more detail on the specific efforts of surrounding counties that have a
history of attracting or are positioned to attract entrepreneurs, businesses, and investors away from
Orange County.
Alamance County
Although not as formally structured as Chatham County's economic development effort, Alamance
County's economic development policies have long influenced Orange County's ability to attract and
retain businesses. Education and median income is lower than that of Orange County; however, the land
values and costs of living also are lower. With Mebane straddling the Orange and Alamance County line,
the area has seen an increase in residents who take advantage of Orange County schools while working
nearby at businesses located in Alamance County that take advantage of their lower tax structure and
regulatory burden. As Alamance County's economic development activity increases, Orange County is
likely to continue to bear the cost of many Alamance workers choosing Orange County as home but
working elsewhere. Taking further advantage of Orange County's policies, Alamance County and its
municipalities have made concerted efforts to attract destination retail development. The most recent
example of this trend is the $60,000,000 Tangier Outlet mall under development that abuts the Orange
County line. In addition to retail, Alamance County and its municipalities have long courted distribution,
logistics, and manufacturing enterprises attracted to the Triangle and Piedmont- Triad.
Much of the County's economic development activity is channelled through the Economic Development
Administration of the Alamance Chamber of Commerce, with additional support on a municipal level by
the cities of Burlington, Graham, and Mebane. Together, the Alamance BOCC and local governments
support a variety of incentives, ranging from cash grants that are negotiable but based primarily on the
capital investment associated with the project. Terms and conditions for grant payments also are
negotiable and are codified in written performance agreements between the company and the local
government. Other incentives include utility upgrades /extensions and/or rate incentives, expedited
regulatory processes, and/or various fee /charge waivers for site/building development costs —all of which
are considered and offered based on the specific project requirements.
Examples of recent incentive packages include $1,000,000 approved by the Alamance County
Commissioners in 2008 for Sandvik, an existing company. In 2009, Alamance County coin inissioners
awarded a $50,000 incentive package awarded to German polymer -maker Indulor if it pays property taxes
151 Page
through the end of 2011 and creates 20 jobs by the end of 2013. This package was matched by another
$50,000 incentive package awarded by the City of Graham. Currently, both Alamance County
Commissioners and the City of Mebane City Council are considering incentives designed to attract
Tri Vantage, an expansion of existing Glen Raven, Inc. operations, which entails the construction of a new
100,000 sg.ft. consolidated distribution center representing a total investment of $8.2 million and
employing approximately 35 people. The company has requested $200,000 from Alamance County and
another $80,000 from the City of Mebane.
Looking towards the future, Alamance County also is expected to benefit from the Piedmont - Triad's
Clusters of Opportunity capital investment fund which has been established to promote several clustes,
including logistics and distribution, nanotechnology, regenerative medicine, and furniture. Established in
2009, the fund exceeded $1.3 million as of December 2009 and is projected to generate $6.5 million+
over the next five years.
To facilitate development, UDOs have been established at the county and municipal level. In addition,
there are numerous business- and shovel -ready sites from which to choose, including a 104,000+ square
foot speculative /shell building located in Mebane. Many sites are either smaller locations in and around
the municipalities or former manufacturing and similarly large- footprint buildings. As a result, Alamance
is an attractive, highly marketable location for businesses utilizing lower -cost and less - skilled labor.
Chatham County
Chatham County has garnered attention over the last few years due to its success in attracting economic
development activity and investment as its population grows from Chapel Hill and Cary outmigration. In
addition to establishing a stable economic development infrastructure and established UDOs at the county
and municipal level, Chatham County has mapped a well-defined path for itself by targeting seven
industry clusters --most of which leverage Orange County and other Triangle assets, especially UNC.
These clusters are architectural and engineering services, technical and research services, basic health
services, pharmaceuticals, information technology services, higher education and hospitals, and
renewable energy.
Supporting this effort, is a robust economic development strategic plan developed by UNC's Center for
Competitive Economies (C3E) on contract from Chatham County's BOCC. In addition, in 2009,
Chatham County's BOCC allocated $250,000 to establish a revolving loan fund to help finance loans to
entrepreneurs in Chatham County. This loan fund is overseen by the Economic Development
Corporation, is administered through a partnership with the Center for Community Self -Help in Durham,
and targets minority- and women -owned businesses, youth entrepreneurs (ages 18 -35), and businesses
within the targeted industry clusters from Chatham County's strategic economic development plan.
In addition to a lower tax structure, Chatham County also offers financial incentive grants to new and
expanding businesses that meet certain criteria for project investment and job creation. Moreover, County
regulations allow for fast -track permitting. The County offers at least seven business -ready sites totalling
1300 acres and has begun seeing improvements in areas such as education, median income, and reduced
poverty rates. As a result, many of Chatham County's demographics compare favorably with Orange
County's, including a poverty rate that was lower than that of Orange County 28 in 2008, although it rose
above Orange County's rate in 2009.
Durham County
Overall, Durham's costs of doing business remain low compared to other technology centers in the United
States. According to the 2007 Milken Institute Cost of➢oing Business report, North Carolina has the 20th
lowest operating cost for business. Construction cost factors as prepared by R.S. Means Company are
approximately 75% of the national average. The cost of living as calculated using the American Chamber
2810.3 %vs 13.9% (2008), US Census Bureau State and County Quick Facts
16lPage
of Commerce Research Association numbers historically place Durham 10% below the national average
With 80% of Research Triangle Park being located within Durham County, the entire county continues to
be a popular location for university spinoffs, non- academic entrepreneurs, and incoming domestic and
foreign business, alike. Awash with a wide mix of space representing a full range of price points and site
amenities, Driving this effort is a four -year $2,400,000 initiative sourced through the Greater Durham
Chamber of Commerce, which leads Durham County economic development efforts. This well- funded
and public policy - supported initiative is dedicated to achieving the following:
• Increase employment by more than 9,000 jobs. (Includes direct, indirect and induced jobs) (Durham's
goal for direct jobs is to average 10% above the Durham average wage.)
50 new and/or expanded businesses
• Increase private capital investment by $1 billion
• Create $737 million in new local earnings
• Increase disposable personal income from new jobs created by $626 million
• Increase Net Personal Consumption Expenditures by $570 million
Expand deposit potential for area financial institutions by $169 million
Durham's targeted clusters include life sciences, electronics and software, nanotechnologies, pervasive
computing, advanced medical care, analytical instruments, nanoscale technologies, informatics, vehicle
component parts, enviromnental product design and manufacturing, and financial services.
Durham County's economic development efforts are both inward - and outward - facing. In addition to
establishing a leadership role focused on retaining and growing existing businesses, the Chamber has
established supporting programs, with the cornerstone based on increasing the connection between
business and universities, particularly in the area of technology transfer from academic to private sector.
To encourage business attraction, growth, and retention, both the City and County of Durham utilize a
common UDO and offer a host of incentives which augment state and federal programs. These
incentives, which include five local or local /state, four state or state /federal, two federal, and one private
sector programs, are enumerated in Appendix V. These are in addition to the local, state, and federal
programs aimed at environmental and historical assistance, also included in Appendix V.
As for real estate product availability, Durham's properties range from Class A office space to
manufacturing space. Offering rates from $3.00 /sq.ft. to $25.00 /sq.ft., entrepreneurs and businesses
wanting to locate directly in the Park can find office space as low as $9.00 / sq.ft., Having adopted a
uniform development ordinance applicable to both the City and County of Durham in 2006, the
permitting process is predictable and consistent, with planning fees and processes being clearly laid ou?9.
Wake County
Wake County Economic Development is housed within the Greater Raleigh Chamber of Commerce. In
addition, it is financially supported by Edge4, a program by which 90+ private businesses, including
RTP's largest corporate residents invest in Wake County and RTRP economic development efforts 30 3
Currently, Wake is marketing numerous properties, including office space ranging from $15 /sq.ft to
$23 /sq. ft. In addition, Wake includes 1,800 acres in RTP and offers additional industrial parks and two
additional certified sites located elsewhere in the county which already have undergone the following:
" hlto: /Avw"v.ci.durham.ne.usl departments /planninglodflolannino fees 0701090 f Durham City-County Comprehensive Plan Economic
Development Element: http*Umm ci durham nc us /depadmentsl lap nninot comp—planidep_06.pdf
30 htt0:Mwww.raleigh- wake.orgloaae ledge- inveslor- directoiy
31 hftp'ihvuai recaarchhianglP nrglnnlnadcttJasvelattare19009 09 him
171 Page
• Business /industrial use designation
Phase I enviromnent audits
Geo- technical studies
Topographical analysis and maps
• Aerial photography
• Availability of public utilities
Water system extension engineering design
• Sewer system extension engineering design
Industrial quality infrastructure
• Engineered site development plans
Detailed analysis of development cost
Complete information on pricing
Boundary survey
Wetlands delineation map
Archeological findings
Rare /endangered plant and/or animal report
• 100 year flood evaluations
UDOs have been established in every municipality in the county as well as at the county level. In
addition, almost, if not every municipality implements defined incentive policies, many of which are
based on that adopted by Wake County. It was to Cary that Orange County lost an opportunity in which a
knowledge company headquarters employing more than 80 highly skilled white collar workers with
salaries of $75,000+ because Cary was willing to match state incentives at a cost of less than $100,000 to
the city.
Adapting Accepted Practices and a Data - Driven Programmatic Approach to Economic
Development
We recommend that the Board of County Commissioners adopt a data - driven programmatic approach.
We believe when our recommendations are endorsed and fully funded, in their entirety, Orange County
will begin change its mix of commercial and residential property tax revenues by encouraging local
business necessary for community health while also attracting established business capable of employing
residents who now must leave the county to work. Providing financial and personnel resources in the
sequence and timeline identified by the EDC will encourage both public and private investment, tax
revenue, and jobs to Orange County residents. Failing to enact these recommendations will prevent
Orange County from meeting its economic development objectives and make the resulting public
financing climate even more challenging in the upcoming decade.
The First Leg: Infrastructure
We believe any step taken without the funding and completion of water and sewer infrastructure to the
Buckhorn and Eno economic development districts will continue to eliminate Orange County from
consideration by the majority of site selection specialists and business owners looking to expand or
relocate. Recalling RTRP's 2009 banner year, Orange County's lack of cost-competitive commercial real
estate product is one reason why it failed to increase private investment and jobs. Orange County has
several hundred thousand square feet of Class A office space, but its price point ($30 - $32 /sq. ft.)
significantly exceeds the $18 - $25 /sq. ft pricing found in neighboring counties. In addition, the lack of
Class B office space and wet lab space further hampers business establishment and expansion within the
county.
Although Orange County price points tend to be accepted by businesses such as wealth management
firms or high -end restaurants, they are too high for incoming domestic and European companies already
looking for Triangle locations. Ironically, it is Orange County where executives and many employees of
these incoming companies choose to live, but its lack of cost - competitive site stock places the County at
disadvantage. Orange County's lack of business -ready physical infrastructure is a dramatic disadvantage
towards achieving any sizable growth in its commercial tax base.
We applaud the efforts of the BOCC in supporting the drafting of engineering plans for the Buckhorn
EDD and strongly urge that the BOCC provide the resources necessary to complete certification by the
181Page
State of North Carolina. North Carolina's certification program is designed to showcase premium
business locations throughout the state that have undergone a rigorous pre -qualification process to ensure
they are shovel -ready for immediate development. The Certified Sites designation is granted only after
communities undergo a stringent review process that demonstrates that they've addressed 31 prerequisites
including:
• Business /industrial use designation
• Phase I environment audits
• Oeo- technical studies
• Topographical analysis and maps
• Aerial photography
• Availability of public utilities
• Industrial power quality
• Engineered site development plans
• Detailed analysis of development cost
• Complete information on pricing
North Carolina's certified sites are equipped with all the information companies and site selectors need to
develop detailed timelines for development, construction and completion, budgeting, cost control, risk
mitigation and planning32. Complete program requirements are included as Appendix IX.
The Second Leg: Economic Development Toolkit Tailored to Current Market Conditions
Although under the remit of the Planning Department, a streamlined Unified Development Ordinance
(UDO) similar to those already offered in surrounding counties also is a necessary component of
economic development success. Understanding that time is money and new business will not consider
jurisdictions that encumber a business' progress with regulations and time requirements substantially
greater than those required in neighboringjurisdictions, a comparable UDO structure that is capable of
supporting permitting processes of 90 days or fewer is needed for Orange County to be viewed as a
comparable location within the region and will be used as an effective recruitment tool.
A recapitalized and enhanced small business loan fund supporting local start -ups will be readily
welcomed by capital - strapped entrepreneurs. Increasing the flexibility of such a fund to support more
service- and knowledge -based start-ups will enable Orange County to serve a Beater number of these
entrepreneurs as they move beyond the garage or kitchen table. Over the last year, Orange County
successfully supported two successful businesses—one of which, PhD, garnered national recognition via
MSNBC and subscribing media outlets. However, having allocated all funds ($75,000), the County is
limited in our capacity to assist other small locally -owned businesses. We would like to maintain this
strength in the coming years but again need to offer comparable benefits in the eyes of business irmestors
with surrounding counties to attract and retain these businesses, particularly those being fuelled by UNC
research or student/faculty entrepreneurs.
Providing investment assistance to established growing and relocating business will enable Orange
County to participate in the economic development market for businesses already employing or poised to
employ County residents who currently commute for work. Establishing a pilot incentive fund will enable
Orange County to gain experience negotiating with businesses wanting to locate here. Rather than subject
every business opportunity to a drawn-out political process, the EDC recommends providing the
Economic Development Department with funds that can be accessed fast enough to effectively respond to
igIPage
opportunities as they arise. Through these negotiations, Orange County will be in the position to better
understand the specific needs of prospective businesses as well as better understand which County assets
are most attractive against neighboring counties. This information will be used in conjunction with data
gathered from contracted research into UNC spin -off opportunities, RTRPlOrange County cluster
analysis, and funding mechanisms, among others.
It also remains important for Orange County to continue to cultivate our joint program activities with the
Research Triangle Regional Partnership where many of these opportunities originate. Current staff
utilizes the support from the RTP for research, domestic, and international marketing and industry
expertise. Increased participation not only improves our knowledge of current practices but also helps us
identify potential candidates of which Economic Development staff otherwise would not be aware.
The Third Leg: Current Data, Analysis, and Knowledge
Getting the best return possible on this proposed investment in infrastructure and economic development
tools requires a solid foundation of knowledge. Taking advantage of UNC resources, the EDC
recommends amassing data matching regional clusters and industries with Orange County assets,
information on viable funding mechanisms that meet both short- and long -term fiscal needs, and
additional tactical information on infrastructure, regulatory, and structured financial incentives capable of
increasing Orange County's business attractiveness and marketability in the region and state.
Lastly, with the research completed from a $25,000 investment in FY 2010 -2011 and from experience
gained through the provision of economic development services supported by business retention and
recruitment funds as well as by an expanded small business loan program, Orange County will be well -
positioned to commission in FY 2011 2012, a substantial data - driven economic development strategic
planning process that will include cluster analysis, county and regional SWOT 13 and forces analyses,
economic impact analysis, and public input, as well as specify priorities and critical path elements,
include SMART goals and objectives, and assign specific responsibilities and accountabilities.
Conclusion
We, the EDC, are committed to Orange County's economic health and believe a more balanced tax base
is critical not only to the county's long -term fiscal health, but also to our ability to maintain our
significant quality -of -life attributes and to lessen the demographic trend of the county becoming an
exclusive, high - income bedroom community. Orange County offers a wealth of assets within its borders
and is fortunate to be a member county of one of the country's leading economic development regional
partnerships. In a period in which the County, state, and nation suffered from significant economic
shocks, our region experienced its most bountiful year yet, attracting $1,900,000,000 in private
investment and 10,000 +jobs. UNC, the County's flagship economic development engine received record
research finding of more than $700,000,000 in 2009. Yet despite these dramatic gains and being in a
prime geographic location, Orange County's share of private investment and job creation was
insignificant.
For years, Orange County has followed its own philosophy and path when it comes to economic
development, and during economic boom periods, the County was financially solvent. As a result, it did
not need commercial development to support cash neutrality and budgetary requirements. This non -
reliance on commercial development meant that heretofore, the County has not seriously considered
business interests or economic development market demands when establishing and refining the County
development policies. With shifting demographics, the current economic environment, and future
services needs, Orange County finds itself needing a larger commercial property tax base to meet its
revenue needs. In order to increase its commercial tax revenues, it will need to invest in business - friendly
policies and provide investor - friendly tools comparable with those offered by neighboring counties.
33 Strengths, Weaknesses, Opportunities, Threats
. ......._.._ ............... .
20IPage
The economic development market is controlled by supply and demand, and businesses and site selection
specialists understand that there are more prime locations than there are economic development
opportunities. As a result, jurisdictions that do not meet key site selection criteria will not be considered.
Orange County has been in this position for the past two decades and will continue to be passed by until it
develops market -ready product and provides market- competitive tools at the disposal of its economic
development professional staff. Moreover, Orange County's policies will continue to be out-of-step with
surrounding jurisdictions until it begins to systematically acquire decision - support data and adopt data -
driven strategies. Rather than repeat past piecemeal fixes, we recommend a strategic, programmatic
approach that incorporates physical infrastructure development, regulatory streamlining and
simplification, regional collaboration, expanded small business loan programs, fully funded business
retention and recruitment funds, paid research, data - driven economic development strategic planning,
market development, and branding —in this order. Together, these elements provide a strong foundation
for short-, mid -, and long -term County fiscal health and well- being.
zit Page
Appendix 1. Research Scope Requested of UNC DCRP Interns
221Page
'
MEMORANDUM
From: Orange County Economic Development Advisory Board
To: Dr. Meenu Tewari, Dept. of City and Regional Plamring,
ORANGE COUNTY UNC- Chapel Hill
Economic Development Date: September 17, 2009
Commission
Re: Revised Research Tasks List for Research Assistants Positions
Original Task List, September 1, 2009
1. Documentation detailing the technical, legal, and financial considerations necessary to bring
complete infrastructure to all County economic development districts
2. Document, measure, and analyze Orange County's desirability per commonly - accepted key site
selection criteria; identify strategies for targeting businesses whose local economic impact would be
beneficial.
3. Documentation and analysis of best practices associated with financial, in -kind, and other types of
economic development incentives and tools being used to retain and attract businesses in jurisdictions
with characteristics similar to Orange County and by local governments targeting business types
desired by Orange County
4. Evaluation of the impact of the 2005 -2010 Investing in Innovation Strategic Plan by assessing results
against the Plan's objectives and benchmarks"
Revised Task List September 15, 2009 Four above tasks plus ....
5. Identify Preferred Business Sectors.
a. Develop clear criteria defining desirable businesses. (this would be a continuation of
work conducted up until 2007 as part of the EDC's Investing in Innovation Strategic Plan
and would also include)
b. "Develop an energy plan that includes economic development strategies to attract, retain,
and grow `green' business" (This is one of the County Commissioners' priorities
included with its Economic Development Goal Statement).
6. Recommend metrics for the County Commissioners' Economic Development Goal Statement,
"Implement planning and economic development policies which create a balanced, dynamic local
economy that promotes diversity, sustainable growth, and enhanced revenue while embracing
community values." Discussion: Can the EDC identify and recommend metrics that will enable the
commissioners to determine if the goals are being achieved; i.e. how can the EDC measure a
"balanced economy ", the "dynamism" of the local economy, and the local economy's promotion of
"diversity"? Ditto for "sustainable growth ", "enhanced revenue ", "embraced community values"
7. Conduct preliminary research into the pros and cons of current bureaucratic structure of Economic
Development functions in Orange County Govermnent as compared to a 501(c)3 private, non- profit
governance structure. (The interim county manager's recent report on county departments raised the
issue of considering alternative legal structures for the EDC).
8. Investigate and recommend one or more methodologies for quantifying the opportunity cost borne by
Orange County by not developing its Economic Development Districts in a more timely manner, nor
in having a robust set of "best practice" tools available in its Economic Development tool kit.
PO Boa 1177 • Ilillsborough, NC 27278
(919) 245 -2325 • FAX: (919) 644.3008
EMAIL: edcmail(aco Oran e ne ns e wEB ADDRESS: em co orange nc.us /ecodev
Appendix II. The Role of Research Universities in Industry Cluster Development
Research and development centers of research - driven universities, such as UNC, often concentrate on areas that tie into their areas assets.
University research, in turn generates new businesses, which strengthens the attraction of similar businesses into the region.34 The power of this
engine is magnified with the collaboration of economic development professionals. This phenomena certainly holds true in RTP, where each of the
cornerstone universities are known for programs and research associated with 13 clusters targeted by RTRP and the State of North Carolina for the
Triangle region and are further supported via federal, state, local, and private research funding.
Figure 5 North Carolina University /Industry Cluster Matrix
Unfeorsity Engagement by Region
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Outline of the Precision Marketing Process HIM Status of Thirteen Targeted Sectors
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Appendix III. Comparative Funding of County Economic Development
Investing in Economic Development
Per Capita investment by County
Wake
*,^ Moore
Orange
*Granville
Vance
Johnston
Franklin
Warren
Durham
Chatham
Harnett
Person
Lee
251.Paac
$17.78
517.84
'Iraclude.:funding for count,; re§onaI and d(m— mo,4vn'cDCs
<. 2007 funding, most recent data avaifBble.
Chatham unto Economic
Development Corporation
MISSION: The purpose of the Commission is to assist the County of
Franklin in promoting economic development, and to establish a
framework to be utilized in coordinating local, state and federal efforts
toward this end. Major emphasis shall be placed on providing the basic
facilities essential for attracting and encouraging sound economic growth
in the county.
STAFF: 3 - President, Business Retention
Coordinator, Research /Innovation Manager
STRUCTURE: Non - profit, public /private partnership
FUNDING: County committed $1.8M over next 5 years; EDC launching
capital campaign, workingto match investment with private funding
EDC Total FY09 -10 Budget
$12,500
M Other K County Appropriation '01 Grants
Chatham County ED Budget
07-08 08-09 08-(
Expenditures Actual Budgeted Estim;
Salaries'
Other Personnel Costs -
Operating 214,009 432,748 41:
380;038
Debt 191,515 329,883 369,883
Transfers
Public Assistance /Grants /Special Programs 46,566
Capital Outlay -
TOTAL $405,524 $809,197 $782,368 $
)8,283
408,283
4,858
4,858' '
)3,179
$760,155'
Durham County Economic
Development r rti
MISSION: The mission of Durham County's Economic
Development Program is to develop and implement
initiatives that promote the economic well being of
Durham County. This mission is achieved by working
closely with local economic development organizations
to aid and encourage new capital investment and the
creation and retention of qualityjobs for Durham
residents.
STAFF: 0 -County Manager's Office contracts with the
Durham Chamber to coordinate economic development
initiatives and activities in the county
STRUCTURE: Public
Durham county ED Budget
Summary 0'
Operating Exp.
Transfers Exp.
Other Exp.
Total Expenditures
Intergovernmental Rev.
Total Revenues
Net Expenditures'' 9
INCENTIVES: The county maintains an Economic
Development Investment Program to encourage the
location/ retention of news business and industry. FY09-
10 commitments include:
• American Institute of Certified Public Accountants -
$182,000
• Capitol Broadcasting Company- $613,883
• Eisai, Inc. - $200,000
° IBM Data center - $107,142
° Merck & Co., Inc. - $200,000
°
Nitronex - $45,000
° Parata Systems - $35,000
° Quintiles Transnational Corp. - $533,333
° United Therapeutics Corp. - $130,000
319,332
255,023
1,334,395
1�4
107,142
-
250;(
1,071,000
3,055,333
1,392,444
2,046,:
1,390,332 -
3,417,498
2,726,839
2,530
100,000
500,000
100,000
500,000
;1290,332 '
$3,417,498
$2,226,839
$2,530,
DurhaM
® EconoMic DeVelOpment
MISSION: The Greater Durham Chamber of Commerce is
erves a member- drriceen organs sustain a he thy'econombc members
alt
by helping
climate.
ED STAFF: 3 - Vice President of Economic
Development, Director of Talent & Workforce
Development, Director of Business Retention
STRUCTURE: 501(c)6
FY10 COUNT( FUNDING: $142,000
PRIVATE INVESTMENT: Durham Chamber Vision my Vision
conducted a $2.5M capital campaign,
3D is a four -year, $2.5 million economic development
initiative of the Greater Durham Chamber ,j Commerce
designed conomic prosperity for
ned to bolster business development, job creation
and community image, ensuring
Durham and its residents. This initiative will enable us to
be proactive in economic development strategies and remains One of the ensure that our areanationally and globally. best p laces for
business regionally,
DDI mission is very specific — create an
MISSION: The
environment for private development in Downtown
:
Durham by focusing efforts in five main project areas
• Economic Development
• Parking
■ Appearance
■ Safety
■ Promotion
STAFF: 5 - President, Director of Marketing &
unications, Director of Special Office Manager
Comm
Events, Government Relations Director,
STRUCTURE: 501(c)6
FY10 COUNTY FUNDING: $54,000
Franklin County Economic
MISSION: The purpose of the
Commission is to assist the
County of Franklin in promoting
economic development, and to
establish a framework to be
utilized in coordinating local, state
and federal efforts toward this
end. Major emphasis shall be
placed on providing the basic
facilities essential for attracting
and encouraging sound economic
growth in the county.
STAFF: 3 - Director, Existing
Industry
Coordinator, Administrative
Support Specialist
STRUCTURE: Public
09 -10
08-09
08-09
09 -10
Manager's
Description
Approved
Estimated
Requested
Rec.
Regular Salaries
177,833
180,500
181,697
177,595
Professional' Services
3,000
150
1,000
1,000 ,
FICATax
13,650'
13,808
13,900
13,586
Hospitalization
19,845
19,845
21,830
21,830
Retirement-
8,767'
8,850
8,958
8,755
401 K Contributions
7,113
7,180
7,243
7,243 '
Telephone & Postage
51530'
4,600
5,000
5,000
Printing
5,000
100
1,000
1,000
Utilities
11500
1,000
1,000
1,000
Travel & Training
121470
9,000
7,000
7,000
Building Maintenance
2,000
720
1,000
1,000
Equipment Maintenance
650
350
500
500,
Vehicle Maintenance
2,500
375
2,000
2,000,
Rental Expense
18,825
18;825
12,200
12,200
Advertising
30,700
20,000
17,000
15,000
Automotive Supplies
5,975
4,430
5,000
5,000
Office Supplies
3,500
2,500
3,000
3,000
Paving Project - Neeb
-
-
HUB Project
40,000
40,000
36,000
36,000
Dues & Subscriptions '
3,500
4,500
2,200
2,200
Insurance and Bonds
7,020
7,020
7,722
7,722
Capital Outlay Equipment
1,500
1,220
890
890
Incentive' Payouts
162,655
152,304
107,350
107,350
Novo Incentive to
Water /Sewer Fund
TOTAL
$533,533
$497,277
$443,489
$436,871
Granville County Economic Development
MISSION: The Granville Economic Development
Commission works to provide quality employment
opportunities for our citizens while creating capital
investment. We strive to serve our existing industries
and recruit new companies to our diversified corporate
base.
STAFF: 1 - Executive Director
STRUCTURE: Non - profit
- FUNDING:
• Granville County - provides 2/3 of
budget, $134,616 for FY09 -10
• City of Oxford - provides 1/3 of budget
ABOUT: The purpose of the organization is to promote
economic development in Franklin, Granville, Vance and
Warren counties by developing a new industrial park in
each county with a tax sharing agreement between the
four counties.
STRUCTURE: 501(c)3
FUNDING: Granville County - $36,000 for FY09 -10
ABOUT: Downtown Oxford Economic Development
Corporation was organized to stimulate downtown
economic development in Oxford, North Carolina while
preserving the historical character of the business
district and immediately surrounding areas.
STRUCTURE: 501(c)3
FUNDING: Granville County - $20,000 for FY09 -10
Harnett County Industrial
Development t t
FY08-09
..
FY08-09
FY09 -10
Budget
Officer Rec.
Board
Approved
Line Item Description
Budget
Adjusted
Dept. Req.
216,482
216,482
216,482
Salaries & Wages
215,461
215,461
7,947
7,947
7,947
7,947
Car Allowance
7,947
35.102
35,102
28,423
28,423
28,423
Group Insurance Expense
17,091
17,091
17,169
17,169
17,169
FICA Tax Expense
10.558
10,558
110,608
10,608
10,608
Retirement
4,309
4,309
4,330
4,330
0
Supplemental Retirement
3,351
3,351
3,366
2.381
2,381
Workers' Compensation
15,000
22,000
15,000 I
15,000
15,000
Professional Services
1,000
1,000
1,000
1,000
1,000
Contingency
1,145,805
1,171,722
1,262,833
1,262,833
0
HFTC (Harnett Forward Together committee)
1,000
2,500
2;500
2,500
Industrial Client Entertainment
2,500
500
500
500
500
Board Members
500
4,500
6,600
4,500
4,500
4,500 -
Industry Appreciation
80,000
100,000
240,000
133,041
133,041
Economic Deveiopment
6,077
6,077
2,945
2,945
2,945
Contracted Services
11,960
11;165
11,536
11,536
11,536'
Telephone & Postage
500
500
500
500
500
Maintenance & Repair - Equipment
23,136
20,068
20,068
20,068
Building & Equipment Rent
23,136
' 30,000
: 30,000
30,000
25,000
25,000
Advertising
10,000
10,000
15,000
10,000
5,000'
Printing &Binding';
5,000
' 4,500
5,000
5,000
5,000
Training& Meetings
9,000 '
9,000
9,000
9,000
6,000
Travel Admin
5,000
5,000
5,000
5,000
5,000
Materials &Supplies
18,500
19,295
18,640
18,640
18,640
Dues & Subscriptions
$7„672,297
$1,715,314
$1,932,347'
$1,814,403
$539,240
Total Proposed Expenditure Budget
-
Harnett a Economic Development
MISSION: Harnett County will achieve a more balanced
economic condition by making extraordinary efforts to
compete more effectively for commercial and industrial
investments that will enhance the county's tax base and
improve countywide job opportunities for all of the
county's citizens.
STAFF: 3 - Economic Development Program
Coordinator, Administrative Assistant, Existing Industry
Manager
STRUCTURE: Public
ABOUT: This group of government, political, business
leaders and individuals focuses on a variety of economic
development efforts designed to attract growth that will
improve income and quality of life.
PURPOSE: Attract the growth necessary to improve
citizens' income and quality of life by:
• Promoting Harnett County
• Acquiring & holding real estate for industrial development
• Assisting in the construction and maintenance of
buildings and facilities
• Assisting in industry attraction & retention
• Advertising available Harnett County properties suitable
for industrial and economic development
• Providing information about Harnett County Economic
Development Initiatives
STRUCTURE: 501(c)3
FUNDING: Initiatives are funded through membership
fees; public and private donations; federal and state
grants; and partnerships with ED allies.
Johnston County Economic
Development fi
ABOUT: The Johnston County Economic Development Office acts as a facilitator The office is government on of the private
government and is supported promote development
by County adpvalo valorem t xes.'n the County.
available for helping ompaniestexpand and/or locate to the area. Historically, Johnston case-by-case
a County's hpartegpat on has been
structured public utilities hes
publ cimpro ement p ojects benefit mo e than just asinngleuser and encourage deve opme t h ough the upgrade
and
extension of these d appropriate that tend to compliment as well as diversify the County's industrial base. committed by the Boar
for projects deemed app p
INFRASTRUCTURE: The County maintains an Industrial Infrastructure Fund, FY2010 funding at $986,000.
Johnston County Industrial Development Budget
STAFF: 1 - Director, currently hiring an
ED Technician Industrial development 2007 Actual 2008 Budget 2008 Actual
STRUCTURE: Public Salaries & employee benefits
185, 725 184,276 179,958
FUNDING: Provided by the county. professional Services
85,421 J.23,306 105,717
other operating expenditures
21,311 33,996 27,778
Capital outlay
8,572
$301,029 $341,578 $313,453
Total
Lee County Economic
MISSION: The Lee County Economic Development
Corporation will work on behalf of Lee County, the City of
Sanford, and the Town of Broadway to
attract, retain, and facilitate the expansion of high
quality business and industry to increase the tax base
and job opportunities for Lee County citizens, and to
promote sound planning for infrastructure
improvements to maximize potential for industrial and
residential growth.
STAFF: 2 - Director, Administrative Assistant
STRUCTURE: 501(c)6
FUNDING: Provided by the county and its two
municipalities.
05 -06A,
Personnel 149,
Operating 1.054
Total Expenditures $1,203
INCENTIVES: Provided to new and expanding industries
that have made a significant investment and
employment commitment. Incentives funded by the
county and managed bythe EDC include:
• Caterpillar - $9,021
• Challenge Printing - $16,855
• Frontier Spinning- $40,023
• Lee Brick & Tile - $73,369
• Moore's Machinery company - $33,390
• Pentair - $8,105
• Wyeth #3 - $457,080
• Wyeth #4 - $213,152
ualny ^06-07 Actual 07 -08 Actual 08 -09
31 157,507 167,722 1
393 1,025,488 809,237 c
324 $1,182,995 $976,959 $1,1
04 11014, o - -
'80 862,943 862,943
X84 $1,039,221 $1,038,261
moore County
Partners In Progress
MISSION:
■ Website: Our mission is to add wealth to the community by attracting
investment to expand the tax base and increase jobs, wages and
personal income - all directed toward maintaining and improving the
quality of life for our citizens.
■ Form 990: The purpose of our organization is to lessen the burdens of
local government by helping relieve poverty and to improve overall
quality of life for all citizens living within the county.
STAFF: 1 - Executive Director
STRUCTURE: 501(c)3, public - private partnership
FUNDING: 2007 Form 990 lists the following funding -
• Direct public support- $98,863
• Government contributions - $163,500
Orange County Economic
Development Commission
MISSION: Our purpose is to make Orange County a smart, innovative place - a great place in which to live and work. We
encourage public - private investments to provide jobs for county residents and to increase the non - residential tax base.
Through these investments, we enhance the financial well -being and quality of life of county residents, and the ability of
their local governments to provide high - quality services.
STAFF: 4 - Director, Administrative Assistant, Economic Development Specialist, Agriculture Economic Development
Coordinator
STRUCTURE: Public
Orange County Economic Development Budget
Dept. Req. ;
34
06-0 7
07 -08
08 -09
084
(53,559)
Actual
Actual !
Budget
Estime
Personnel Services
290,493
202,210
311,404
296;1
122,114
157,480
153,618
142;3
Operations
Total Expenditures
412,607
359,690
465,022
438,5
Offsetting Revenues
(57,020)
( 92,248)
(54,095)
(56,0
County Costs (net)
$355,587
$267,442
$410,927
$382,-0
Dept. Req. ;
34
472,283
468,321
7)
(53,559)
(53,559)
87
$418,724
$414,762,
Person County Economic
Development Department
MISSION: The mission of the Person County Economic Development Department is to assist the County of Person in
promoting economic development and to maintain a framework for local, state and federal efforts necessary to enhance
the growth of the area.
STAFF: 2 - Director, Administrative Assistant
Line
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Person County Economic Development Budget
0"9 09-10 09-10 09 -10
noon Rec_ Board Approved
Am
11
5,711
074
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112,5',
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5;1
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5(6
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8,3
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5,5
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11;2
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2,C
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5,000
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2,`
PP /SVC -IND REC
152;:
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24,5
21AL RECRUIT - FPI
801,,
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i REP /BLDG & GROS
10,
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13,
r $750 -$4999
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SUBSCR
4,
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3,
$1,177;
Person County Economic Development Budget
0"9 09-10 09-10 09 -10
noon Rec_ Board Approved
Am
11
5,711
5,76U
9;197
9,272
5,620
5,668
11;136
11,135
2,619
1,847
2,475
2,250
5,000
3,500
85,000
85.000 7
1,203,000
1,174, 589 1,17
5;000
5,000
3;600
2,500
2,000
2,000
10;000
10,000
3,431
7 5,000
3,115
g 4,300
4,019
g $1,483,304
$1,446.863 $1,2(
474'
2,250
2,000
75,000
589' 572,000
,000
1,000'
1,000'
,435
8,435
500
1,019
4,019
Ion
$693,403
Henderson-Vance Economic
I ion
Development ComMlssi
BACKGROUND: Henderson County and the City of Vance created a
combined EDC in June 2009. The new EDC has begun a strategic planning
process and proposed the following:
MISSION: To provide leadership and market the community to improve the
quality of life through business recruitment, retention and expansion.
VISION: To be the most economically vibrant and socially responsible rural
community in North Carolina, with widely shared prosperity.
STRUCTURE: Public
STAFF: 0 - Currently interviewing for Director position.
FUNDING:
® Chairman Sam Watkins has suggested that the organization's marketing
efforts be funded through five percent of any new tax base revenue the
EDC produces.
® Vance budgeted $211,656 for the EDC in FY09 -10.
Wake County Economic Development
MISSION: The mission of the Greater Raleigh Chamber
of Commerce is to sustain and further develop a thriving
economy and to enhance our community's quality of life.
To achieve this, the Chamber divides its work into three
main lines of business — each with an eye toward
economic expansion and a better quality of life. In
simple business terms, those three lines are product
sales (Economic Development), product development
(Government Affairs /Public Policy), and membership
services (Membership Services and Small Business.)
STAFF: 8 - Executive Director, Assistant Executive
Director, Program Assistant, Executive Director (Raleigh
ED), Project Manager, Project Manager, Research
Manager, Program Assistant
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
Total FY10 -16
STRUCTURE:
• 501(c)6, public - private partnership
• Housed in the Greater Raleigh Chamber of
Commerce
FUNDING:
• County
Provided $168,000 for FY10
Proposed $10.5M funding through FY2016
• Chamber
Announced $10.2M investor pledges in July 2009
Conducting EDGE4 Campaign to raise $12M by 2014
Wake County 7-Year Economic Development Budget
omic
Off -site water
On -site Water
Total
Itives
and Sewer
and Sewer
3,000
30.000
$168,000
5,000
2.679,000
$4,564,000
L,000
30,000
300;000
$1,421,000',
3,000
5,000
300,000
$1,373,000'
),000
-
300,000
$1,339,000
4,000
-
$884,000
3,000
$726,000
1.000
2,744,000
900;000
$10,475,000
Warren County Economic
Development Commission
MISSION: To create a comprehensive Economic Development Program that
will grow and maintain a strong, diverse local economy, which provides job
opportunities, enhances the local tax base and improves the county's quality
of life
STAFF: 0 - Director position currently unfilled
STRUCTURE: Public
FUNDING: FY10 budget $178,634, top expenses include -
• Wages and benefits $122,719
• Tourism $25,000
• Marketing $13,850
• Rent $4,080
• Travel expenses $3,057
• Dues /subscriptions $2,600
Appendix IV. Incentive Programs for Businesses
Locating /Growing in Durham City and County 35
Financing Options and Resources
City Economic Development Investment Policy: City of Durham
The Capital Investment Incentive segment of the City's Economic Investment Policy provides a credit for
up to three percent (3 %) of the new, non - residential capital investment for projects located within the
designated Community Development Area (CDA), or up to one and one -half percent (1.5 %) of the project
investment if the facility is located outside the CDA. In no event will this incentive exceed $1 million.
The following criteria apply to all projects considered under this policy:
If the facility is located within the CDA and within Priority Growth Line (PGL), the project must
directly create at least $500,000 in new, non- residential capital investment, or ten new (10) full -time
jobs
If located outside the CDA, but within the PGL, the project must exceed a $20 million threshold in
new, non- residential capital investment or create one hundred (100) full -time jobs
• If located beyond both the CDA and the PGL, the project must directly create at least $25 million in
new, non- residential capital investment or one hundred and fifty (150) full -time jobs
• Eligible real estate includes office buildings, health care facilities, R &D facilities and labs, and
warehouse /distribution buildings
In order to qualify, the project must be located within city limits and all proposed development must
be consistent with Durham's economic and land -use goals.
Economic Development Investment Fund: Durham County
Corporations planning to develop or expand their site within Durham County may be eligible for a tax
credit up to five percent (5 %) of the total new or expansion capital investment, not to exceed $2 million.
Funding proposals are developed to help offset specific site preparation expenses, such as site grading,
road improvements, and campus amenities. Eligible industries for this investment are corporate
headquarters, R &D operations, manufacturing facilities, and warehouse /distribution industries. A
minimum investment threshold of $15 million and forty (40) new, full -time jobs has been established.
Durham County is interested in creating quality jobs for its residents paying a competitive wage level.
EC Rider Incentive Rate for Electricity: Duke Energy Company
Duke Energy offers a four -year billing credit incentive for new and expanding industry in Durham
County. This credit is applied to the participating firm's electric bill, and will reduce annual costs by
twenty percent (20 %) in the first year, fifteen percent (15 %) in the second year, ten percent (10 %) in the
third year, and five percent (5 %) in the fourth and final year. In order to be eligible, the company must
add a minimum of 1,000 kilowatts (kW) of new service at one delivery point, and must maintain a
monthly average of 250 hours use of electricity demand. Additionally, a capital business investnent of
$400,000 per 1,000 kW of load added plus a net increase in full -time employees, or an increase of at least
seventy five (75) full -time employees per 1,000 kW of new load within the Duke Energy service area.
This incentive requires a minimum use contract commitment of ten (10) years.
Foreign Trade Zone: State of North Carolina
Under federal authorization, the North Carolina Department of Commerce has created six (6) Foreign
� Greater Durham County Chamber of Commerce website www.durhamchambecorg !business /starling -growing
4o1Page
Trade Zones (FTZs) across the state, providing a number of economic advantages for businesses involved
in international trade. Zone 1193 is located in the Triangle, based at the Raleigh - Durham International
Airport. Companies desiring the ability to delay tariff costs until goods are ready for the consumer
market may apply for a FTZ sub -zone assignment at their Durham County facility. With this designation,
raw goods may be imported, processed, assembled, re- packaged or otherwise manipulated on site with
taxation occurring only once the product is ready for sale.
Industrial Revenue Bond (IRB) Financing: Durham County
1RBs are supervised and approved by the state, but are issued through the Durham County Bond
Authority. IRB funds may be used by a manufacturing corporation to finance land, buildings or
equipment. The company must agree to pay its employees at least 110% of the average state weekly
wage for the appropriate manufacturing industry. The bonds may only be used for the financing of
manufacturing or industrial facilities and pollution control facilities for industry and/or related new
equipment. Two types of bonds are available for business development. A Tax Exempt Bond does not
subject the bond - holder's income to federal income tax; therefore the maximum bond amount is $10
million, and a firm may not hold more than $40 million outstanding nationwide. Taxable Bonds differ in
that they are not exempt from federal taxes, but do remain exempt from state taxes. Because these bonds
involve more risk for the borrower, there is no federal cap on the amount that may be borrowed.
Investment Tax Credit: State of North Carolina
If a corporation investing in Durham County makes a significant investment in machinery or equipment,
it is eligible for a seven percent (7 %) tax credit on all investment dollars exceeding $1 million. If
investment takes place within the State Development Zone, this $1 million threshold is no longer
applicable, and the firm may take a credit on the total amount of funds. hi order to qualify, the employees
of the firm in question must be hired at a wage equal to 110% of the state's average weekly wage (100%
of state average if the jobs are located within the SDZ). All credits received must be taken in equal
installments over the seven (7) years immediately following installment, and the equipment must remain
in use within state and/or SDZ boundaries for those seven (7) years or credits will be forfeited.
Downtown Prime Rate Loan Program: Downtown Durham, Inc
This city program organizes local financial institutions, allowing them to provide low- interest business
loans for the acquisition and rehabilitation of Downtown Durham properties, as well as purchase of
capital equipment for downtown use. There is a maximum origination fee levied of one -half percent
(0.5 %) and the minimum loan amount is set at $25,000. Currently eight (8) local banking institutions
participate in this valuable funding assistance program
Downtown Low Interest Loan Program: Downtown Durham, Inc.
Administered by Downtown Durham, Inc. under authority of the city, the Low Interest Loan Program
offers applicants that qualify for the Prime Rate Loan program the opportunity to have the city purchase
up to one -half the loan from the bank at two percent (2 %) below prime, not to exceed $500,000. A one -
half percent (0.5 %) origination fee will be charged, but the city will not involve themselves in further
decisions made by the involved lenders. The result of the combination of the Low Interest Loan program
and the Prime Rate program (see previous) is a loan provided at one percent (1 %) below prime to
qualifying firms.
Central Administrative Office Tax Credit: State of North Carolina
If a corporation chooses to locate a central administrative office in Durham County, it is eligible to claim
a seven percent (7 %) tax credit on the new investment, not to exceed $500,000. Requirements include the
creation of forty (40) new full -time administrative positions and continued operation of the facility during
the following taxable year. Investment is calculated from the cost of the property if owned; or, if the
building is leased, the investment is equal to the cost of payments made over seven (7) years, plus any
improvements made to the property. This credit is taken by the taxpayer in equal installments over a
411Page
period of eight (8) years. This credit expires if the property ceases to be used as a central administrative
office; the credit will also lapse if the number of employees at the central administrative office decreases
by forty (40) jobs or more. The NC Employment Security Commission provides certification of central
headquarters status for firms seeking this credit.
Research & Development Tax Credit: State of North Carolina
Firms located in North Carolina are eligible for a tax credit of up to five percent (5 %) of the state -
apportioned share of the expenses for increasing research activities. Eligible corporations must be
registered for the federal income tax credit under Section 41(a) of the Internal Revenue Code, and the
credit must be taken on the taxpayer's current yearly tax return.
Research Expansion Tax Credit: United States Government
Under Title 26, section 41 of U.S. Tax Code, select corporations are eligible for a research credit equal to
twenty percent (20 %) of the excess qualified research expenses for the taxable year, over the base period
research expenses. Base period research expenses are the average qualified research expenses for each
year of the three (3) years preceding the taxable year in which the credit is being taken. This credit is
applicable to both in -house and contract research activities. All research must be performed solely for the
purpose of discovering information which is technological in nature; this research must also be intended
for use in the development of a new or improved business component for industry, and all activities must
be relegated toward a specific purpose.
SBA 504 Loan: United States Government
This program provides long -term, fixed -rate financing for a corporation's major assets, including land and
buildings. Working in conjunction with a local Community Development Corporation (CDC), the Small
Business Administration (SBA) provides financing for small area businesses. Most 504 projects involve
a secured loan from a private-sector lender which covers up to fifty percent (50 %) of the project cost, as
well as a loan from the CDC which covers up to forty percent (40 %) of the project cost, leaving a
contribution of at least ten percent (10 %) equity from the affected business. The maximum loan amount
allowed by SBA is $1,500,000 when meeting the job creation criteria or a community development goal;
the maximum SBA loan is $2.0 million when meeting a public policy goal; the maximum loan for "Small
Manufacturers" is $4.0 million. (For further information click the link above for the United States Small
Business Administration) All proceeds from SBA 504 loans must be used for fixed asset projects.
Allocated funds may not be used for working capital, the consolidation of debt, or refinancing. Eligible
firms must be for - profit and fall within the SBA guidelines. Loans will not be made to businesses
engaged in rental real estate development or speculation.
Environmental and Historical Assistance
Facade Improvement & Mural Grant Program: Downtown Durham, Inc.
Properties that are located within the boundaries of Downtown Durham and are classified as either
commercial or residential buildings are eligible for this city improvement program, administered by
Downtown Durham, Inc. Several grants will be awarded for up to 50 percent of the project cost, not to
exceed $2,500 per project (certain exceptions may receive additional funding). This program's objectives
are to improve building appearances and to create a visually attractive downtown. Qualifying projects
include, but are not limited to, brick surface repair, signage replacement, canopy installation, and mural
painting.
Federal Brownfields Tax Incentive: United States Government
Through the Taxpayer Relief Act of 1997, the United States Environmental Protection Agency (EPA) has
been given power to help spur the cleanup and redevelopment of brownfields sites in distressed urban and
rural areas. This act gives the developers of qualified brownfields properties the ability to fully deduct
from federal tax liability all cleanup - related site costs in the year in which they occur. The incentive is
421Page
applicable only to properties that meet specified land use, geographic, and contamination requirements.
To be eligible, the property must be held by the party which receives the tax incentive and hazardous
materials must be present, or potentially present. In order to receive the tax credits, the property must be
located within an EPA Brownfields Pilot Area (a census tract with at least 20 percent of its residents
living below poverty, or a census tract of 2,000 residents or less which is zoned for at least 75 percent
industrial use).
State Brownfields Tax Incentive: State of North Carolina
The Brownfields Property Reuse Act of 1997 enacted legislation that encourages the removal of
impediments to the redevelopment of contaminated properties. In order to expedite the redevelopment of
these sites, the Department of Environment and Natural Resources (DENR) offers a covenant- not -to-sue
to the prospective developer if they agree to properly secure the property for reuse. It is important to note
that while these defined liability benefits are extended to the prospective developer, the Brownfields
Program does not change legal liability for responsible parties on -site. Additionally, the Voluntary
Cleanup Program (VCP) allows parties responsible for the contamination of a site to assist in the cleanup
of that site in a timely and cost - effective mariner. The VCP allows firms to hire a Registered
Enviromnental Consultant who will oversee and certify site cleanup activities on behalf of the state,
satisf},ing DENR regulations on a private - sector timeline.
Tax Incentive for Brownfields Redevelopment: State of North Carolina
This amendment to NC General Statutes creates a partial tax exemption for the value of qualifying
improvements to a brownfields site during the project's first five (5) taxable years. In year one, 90
percent of the appraised value for qualified improvements is excluded; in year two, 75 percent; year three,
50 percent; year four, 30 percent; and in year five, 10 percent will be excluded. In order to qualify,
prospective developers must show that they have not caused or contributed to the contamination of the
site. Projects must also emphasize redevelopment, and they must have public benefit commensurate with
the relief provided.
Federal Historic Property Investment Incentive: United States Government
The federal government offers a 20 percent tax credit for the rehabilitation of certified historic structures.
A 10 percent tax credit is also offered for the renovation of non - historic, non-residential structures which
were built before 1936. For both credits, the rehabilitation involved must be substantial, and the building
must be depreciable. These credits are not applicable to exclusively owner - occupied structures. The
owner must hold the building for five full years after the renovation has been completed, or the credit
must be repaid. This repayment amount is pro -rated based upon the number of years since the credit was
originally taken.
State Historic Property Investment Incentive: State of North Carolina
A 20 percent state tax credit for the rehabilitation of income - producing historic buildings and properties is
available for firms investing in these structures, as well as a 30 percent state tax credit for qualifying
rehabilitation of non- income producing historic structures, including owner - occupied personal residences.
Eligible buildings are listed on the National Register of Historic Places, or are listed as a contributing
building in a National Register Historic District. In addition, the rehabilitation of the property must be
substantial; for income- producing properties, expenses must exceed either the adjusted basis of the
building or $5,000 within a 24 month period. For non - income producing properties, the rehabilitation
expense must exceed $25,000 within a 24 month period. All work on income - producing property must
meet the Secretary of the Interior's Standards for Rehabilitation, and work on all other properties, must be
approved by the North Carolina Historic Preservation Office.
431Page
Appendix V. Wake County Business Investment Grant Policy
The policy objective of Wake County's Business Investment Grant is to support the development of an
economic enviromnent that attracts or encourages new investment, creates new jobs and results in a
diverse tax base. A Company may be eligible for a Business Investment Grant if they meet both a New
Investment Threshold and New Jobs Threshold. Special consideration may be given to corporate, regional
or divisional headquarters projects for Fortune 500 companies and large international companies.
New Investment Threshold
New companies may be eligible for a Business Investment Grant for new investments, which exceed
$100,000,000 in 2004 dollars. For each subsequent year, the amount of new investment will be increased
by CPI and rounded to the nearest million dollars. New investment is defined as, "improvements to real
estate, machinery, equipment, and other business personal property." The Value of land is not included in
the calculation of new investment. New investment must exceed $100,000,000 in assessed valuation, as
determined by the Wake County Revenue Department. Existing Wake County businesses may be eligible
for a Business Investment Grant for new investments, which exceed $50,000,000 in 2004 dollars provided
that existing taxable assessed valuation exceeds $75,000,000 in the year the grant agreement is approved.
Only the value of the new investment will be used to calculate the amount of the incentive grant.
New Jobs Threshold
New companies are eligible for a business investment grant when the investment threshold is met and at
least 50 new jobs are created. New jobs are defined as a net increase in the company's number of full -
time Wake County employees. A full -time employee is defined as a person who is employed by the
company for at least 35 hours per week and whose wages are subject to withholding. The average wage
for new jobs must pay 120% of the average wage for Wake County, as defined by the North Carolina
Department of Commerce Finance Center. (In 2004, the average wage was $605 per week; 120% would
be $726 per week.) Existing Companies are eligible for a Business Investment Grant when the investment
threshold is met, the company currently employs at least 250 full -time employees, and at least 50 new
jobs are created. The average wage for the new and existing jobs must pay 120% of the average wage for
Wake County, as defined by the North Carolina Department of Commerce Finance Center. The Company
must also agree to provide health insurance in at least the minimum amount required for tax credits under
the William S. Lee Act, as it existed on the date of the approval of the policy. Under these provisions, a
company must provide health insurance for full -time positions and pay a minimum of 50% of the
premiums.
Policy Guidelines
1. Business Investment Grants will be considered for companies meeting the new investment and new
job thresholds. The Board of Commissioners is not obligated to make any grants.
2. All projects will be considered on a case -by -case basis. The County will consider a number of factors
(in addition to level of new investment and number of new jobs) when determining approval of a
Business Incentive Grant, including:
• Type of business, relative to current tax base
• Types of new jobs
• Reputation of company
• The presence of competition for the project
3. The amount of the grant payment to be paid by the County shall be up to 2.25% assessed value of the
new investment paid over a period of up to eight years. In no event shall the grant amount exceed the
amount of ad valorem taxes paid by the company on the new investment in that calendar year.
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4. The County will require that the assessed value of new investment is confirmed by the Wake County
Revenue Department and that all property taxes are paid prior to providing a grant payment.
5. For projects /companies considering locating (or expanding) in one of the municipalities within Wake
County, the County assumes it will be a partner with the municipality in providing a possible
Business Incentive Grant.
6. These policy guidelines are not retroactive to any project, which has been announced prior to the
adoption of these policy guidelines with the exception of Credit Suisse First Boston.
7. All grant agreements are subject to performance criteria that will be outlined in detail in the Business
Investment Grant contract between the company and the County. In the event that a company fails to
meet any of the provisions of the contract, the County may adjust the amount of the grant to the
company or withdraw the grant entirely.
Cary
Purpose
To promote economic development within the Town of Cary and authorize the Town Council to make
appropriations to aid and encourage the establishment of new businesses and the expansion of existing
businesses in the Town. This policy is intended to assist the town in diversifying and increasing its tax
base and developing new employment opportunities for its citizens and the Triangle Region as a whole.
Actions taken under this policy shall be consistent with requirements outlined in North Carolina General
Statues 158 -7.1 for local economic development as well as other criteria established by the State of North
Carolina and the Town Council.
Cary has established itself as a desirable place in which to wok, live and raise a family. The Town's high
standards and quality of life continue to provide the strongest incentives to attract business and jobs to
Cary.
Coverage
Upon adoption by the Town Council, this policy shall be applicable to new or expanding businesses to be
located within the Town of Cary, provided that such businesses have been determined by the Town to be
eligible to receive incentives from the Town.
Policy
8. Cary values its businesses and the jobs, services and products they provide. Consistent with our
commitment to quality customer service, the Town will make available a range of service incentives
that are designed to facilitate the development process and expedite the establishment of new
businesses and business expansions.
9. In order to attract economic development that will provide significant benefits to the Town and its
citizens and/or that provides strategic links for firture economic growth, the Town will make available
infrastructure and/or financial aid, in forms and amounts as determined appropriate by the Town.
10. The use of incentives under this policy will consider geographical areas targeted for development as
part of the Economic Development Commission's strategic plan.
11. Any party receiving incentives of infrastructure and/or financial aid under this policy shall enter into a
legally binding agreement in a form approved by the Town Council.
Implementation
Implementation of this policy will be consistent with the Economic Development Commission Guidelines
for Policies and Programs adopted by the Town Council on December 12, 2002. These guidelines are
reprinted here for reference:
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All economic development policies shall have as the first and foremost objective the maintenance of
the quality of life objectives of Cary 's citizens.
Ensure that property taxes remain low for Cary 's citizens
• Broaden employment opportunities within town borders to minimize traffic and infrastructure
pressures
• Evaluate and enhance Cary 's availability of labor, infrastructure and capital resources to support new
and expanding businesses
Improve communication between the Town of Cary and the business community
• Attract clean, environmentally friendly industry to protect our natural resources and enhance our
quality of life
Fuquay - Varina
Preamble
The Town of Fuquay - Varina wishes, when necessary, to promote economic development by assisting in
the location and expansion of industry and business in the Town. The Town desires such industry and
business that will provide new employment opportunities and enhance the overall quality of life.
Appropriations for Economic Development
Economic development assistance may be in the form of appropriation of funds, Town services, or some
other appropriate form. Appropriations made under these principles shall only be for industry and
business that locates or expands within the Town limits of Fuquay- Varina or an area to be annexed by the
Town. Industry and business, as used herein, shall mean any art, profession, business or commercial
enterprise that employs labor and /or capital in furtherance of commerce beneficial to the Town's general
population and which poses little or no environmental threat to its employees or the community at large.
Appropriations for economic development are not made as a matter of right but are made as a privilege to
the industry or business in the sole discretion of the Town Board. Appropriation of funds, services or
some other form are always subject to the availability of the same. C. Appropriations must be for a public
purpose and made pursuant to N.C.G.S. § 158 -7.1, et seq., and all applicable laws.
Appropriations may only be made when a written contractual agreement with the industry or business
addresses, to the satisfaction of the Town Board, the following items:
1. That the industry or business will locate within the Town limits or an area to be annexed into the
Town;
2. That the industry or business will build or expand its proposed facility within a time specified;
3. That the industry or business will exist and operate its facility at a stated employment capacity for
a time specified;
4. That the industry or business will identify the size, type and cost of its capital investment (of a
proposed facility and equipment), the anticipated uses therefore, the number of employees to be
hired, the number of work shifts and the term of such employment;
5. That the remuneration paid to employees shall be equal to or greater than the median wage then
existing in Wake County as computed by the Department of Commerce;
6. That the Town will recoup all appropriations within 36 months from the beginning date of
operation. Recoupment shall mean town tax revenue generated by the industry equal to the
appropriation of funds, services or other form;
7. That the industry or business will adopt an internal policy whereby it will be (i) a "community
involved" industry or business and (ii) will encourage its employees to reside in Fuquay - Varina
.......... _....... _.......
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and to become involved in community organizations and programs;
8. That the industry or business repay the Town for appropriations upon default of any contractual
obligation.
Administration of Principles
A. Request for economic development assistance shall be directed to the Town Manager. The Town
Manager should request from the industry or business, at the appropriate time, the following information
(to be handled confidentially when so requested):
12. An industry, business or company profile stating the history of the company, what business it is
engaged in, a current financial statement, and a statement regarding its economic and employment
philosophy;
13. Employment numbers for the immediate preceding five years, the number of jobs that will be
generated by the new industry or business along with the median wage, benefits and health insurance
offered to employees;
14. The industry's or business' water and sewer needs and the amount and type of hazardous waste or by-
products used, generated or discharged by the industry;
15. A list of all governmental grants and/or incentives received by, applied for, to be applied for or
offered to the industry or business;
16. The amount of capital investment (facility and equipment) to be made by the industry or business;
17. Any other information deemed appropriate by the Town Board, Town Manager or Town Attorney.
B. The Town Manager shall review the request and information with the Town Board and Town Attorney
together with the Manager's recommendation thereof.
Public Hearings /Comments
After economic incentives are negotiated, but prior to being consummated by contract, a public hearing
shall be held in accordance with N.C.G.S. § 158 -7.1, et seq. and other applicable law; and when no public
hearing is required, then a public comment period shall be held.
Garner
Purpose
The purpose of this policy is to enhance the Town of Garner's Economic Development program
specifically by authorizing the Board of Aldermen to make appropriations to aid and encourage new
industrial, manufacturing, warehousing, distribution, flex - space, office facility or park locations, mixed -
use retail and expansions of existing industrial projects for Garner.
These types of non - residential developments offer new employment opportunities for the citizens of
Garner, broaden the tax base, shift the tax burden from residential customers, and directly move the Town
toward its goal of a 50% residential and 50% non- residential tax base split.
Disclaimer
Appropriations for economic development are not made as a matter of right but are made as a privilege to
the industry or business in the sole discretion of the Town Board. Even if the industry or business meets
all the requirements, the Town is not obligated to give an incentive. Changes in economic conditions may
necessitate the Board of Aldermen to modify, amend, or even terminate the incentive policy, subject to
compliance with any incentive agreements in effect at the time. This policy will be reviewed for possible
updates at least every two years. Requests for incentives are evaluated and negotiated on a case by case
basis.
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Coverage
Incentives will be available to new and existing industries. Existing industries qualify only for that
portion of expansion that represents "new" investment. These policy guidelines are not retroactive to any
project which has been announced prior to the adoption of these policy guidelines.
This policy shall apply to all lands within the corporate limits of Garner or properties that qualify for
amrexation under North Carolina General Statutes, unless otherwise determined by the Board of
Aldermen.
New Investment Threshold
Eligibility: Non - residential projects which have a new investment in building and/or equipment (exclusive
of land) of $10 million or greater as recorded on Wake County Revenue Department tax roll and which
provides at least $1100 of tax base per gallon of sewer allocated are eligible.
The threshold for expansion projects (exclusive of land) is $8 million or greater as it goes on the tax
books for investment of building and /or equipment.
A different threshold applies to Retail /Mixed use as defined in that section below.
Policy Guidelines
The project for either new or existing industries must not have been announced prior to the application for
the incentive. The industry or business shall build or expand its proposed facility within the time
specified. In the event that a company fails to meet any of the provisions of the contract, the Town may
adjust the amount of the grant to the company or withdraw the grant entirely. Repayment (clawback)
provision applies and could affect the status of incentive funds granted by other agencies that require
matching funds.
Incentives
Basis: the actual tax value of the building and equipment as recorded on the Wake County Revenue
Department tax roll will be used to calculate the maximum incentive amount. This number may be
different from the total project cost often discussed in preliminary meetings, a number that often includes
site work, land and other costs to the developer but which are not taxable.
Maximum Incentive Amount: One percent (1 %) of the total investment of new or expanded actual tax
value of the building and equipment shall equal the maximum incentive amount. The 1% will be applied
to the value of the project as presented on the first tax bill after completion of the project, unless
negotiated otherwise. This reimbursement will begin at 95% of that new property tax revenue the first
year; 85% the second year and 75% for all subsequent years until the maximum incentive amount is met
or 5 years, whichever comes first. The base year shall be the tax year preceding the start of the new
project or expansion, or as agreed upon in the contract.
If there is a clerical or administrative difficulty or error solely caused by the Wake County Tax Assessor's
Office that impacts the determination of the first year value for purposes of interpreting this policy, then
the Town Manager, in conjunction with the Incentives Committee, may recommend the adjustment of the
appropriate first year calculation to ensure fair and accurate compliance with this policy.
In very specific projects that meet One NC or Wake County incentive thresholds, the Board of Aldermen
has the option of increasing the percentage amounts and payout periods to match these grants. Upon
request of the State of North Carolina or Wake County, the Town Manager will evaluate and review the
request for thoroughness and compatibility with the Town's economic development goals as outlined
below in the Review section. The Town Manager will present this recommendation to the Board of
Aldermen for formal consideration.
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Corporate Headquarters Incentive Criteria
The Town will provide a one -half percent (.5 %) additional incentive to corporate headquarters if the
project meets the following criteria:
Corporate headquarters means the building or buildings that the principal executive officers have
designated as their principal office [see North Carolina G.S. 55 -140 (17)]. The Town requires that the
corporate headquarters have at least fifty (50) or more full -time employees who are located in the building
or buildings. If the project is an expansion, the expansion must employ a minimum of fifty (50) additional
full -time employees. The wage must be greater than the median wage for Wake County. The jobs shall be
retained at the approved level for as long as incentives are received.
The project must meet all other pertinent criteria.
Retail /Mixed Use Criteria
Large shopping centers and malls (not strip centers) will be considered for incentives if they meet the
other criteria and adhere to a set of design requirements and amenities to be included in the agreement.
The project shall adhere to a substantial number of the Smart Growth Principles as established by the
Smart Growth Network (www.smartgrowth.org). See Appendix 1 for a complete list of the ten principles
and additional details about the Smart Growth Network.
The incentive may be reduced if all requirements and amenities are not met. Shopping center and mall
developments must have a mixed use component as defined by the Town of Garner.
Retail /Mixed use projects shall be of a large size and shall be construed as an economic catalyst type
project likely to encourage and promote other types of positive development for the Town of Garner.
These incentives are intended for major developments (those that exceed a minimum investment
threshold of $50,000,000 and exceed 50 acres in size).
These major development projects may be offered incentives by the Town in such dollar amount, which
may exceed the maximum incentive amount of this Policy, and under such terms and conditions,
including modification of any of the terms, criteria, and requirements of this Incentive Policy, as deemed
appropriate by the Town of Garner Board of Aldermen to maximize the Town's economic development
goals and carry forth the overall goals and services that are the Town's responsibility.
Retail /Mixed Use development must be consistent with the design guidelines for regional centers in the
Town of Garner Comprehensive Growth Plan. The development should be in an area designated as a
regional center by the Comprehensive Growth Plan. The layout shall accommodate a walkable core that is
very pedestrian friendly. The architecture should be rich and detailed, and blend with the surrounding
area. Vertical scale with mixed use office/residential will be given higher consideration. The Town may
require a phasing plan for large scale, multi -year projects.
Prior to approving the incentive package, the design guidelines for retail/mixed use shall be approved by
the Town of Garner. The project must provide a minimum of $1100 of tax base per gallon of sewer
allocated. The project must meet all other relevant criteria contained in this document.
Targeted Incentive Bonus for Cafeteria and/or Bookstores as a part of a qualifying Retail/Mixed Use
development. The community has expressed strong interest and desire for specific retail and restaurant
facilities that are presently absent from the Garner trade area. In recognition of this desire, the Town is
willing to increase the maximum retail/mixed use incentive amount for each of the following facilities
that are included in an otherwise eligible major retail/mixed use project: full - service cafeteria with a
minimum of 210 seats and/or retail bookstorelbookseller with cafe /snack bar with a minimum of 18,750
square feet.
Applications for retaiUmixed use incentives will be evaluated and rated by the Town's Incentive
Committee as selected by the Town Manager. The Committee will thoroughly review and analyze
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applications and will carefully apply the aforementioned criteria, requirements, goals, and stipulations
mentioned throughout this policy document. that are deemed important to the Town. These elements will
serve as a guideline for the staff analysis and the Committee may recommend modifying any of the terms,
criteria, and requirements of this incentive policy, including exceeding the maximum incentive amount of
this incentive policy, to maximize the town's economic development goals and carry forth the overall
goals and services that are the town's responsibility. Upon completion of the Committee's review and
analysis, the town manager will transmit the recommendation to the Board of Aldermen for their
consideration in accordance with North Carolina law.
Other Provisions
Time Period: The payback period for any and all incentives, except retail/mixed use, shall be no longer
than five years.
Payback for retail/mixed use will be negotiated but in no case longer than 10 years.
Redundancy: It is intended that only one incentive will be given per parcel and/or per project. The Board
at its discretion reserves the right to deny an incentive to any business if an incentive is already being paid
to them or another entity for that same parcel and/or project.
The Town of Garner will require that the assessed value of new investment to be confirmed by the Wake
County Revenue
Department and proof that all property taxes and fees are paid prior to providing an incentive payment.
Application
A request for economic development incentives shall be directed to the Garner town manager.
Applications may be obtained through the town manager's office. Applications are to be completed in
their entirety. The Town of Garner understands that some information may need to be held confidential;
however, we reserve the right to obtain the necessary information before making a recommendation.
Among other things, industry or business is to provide information on:
Amount of capital investment.
Employment numbers from past years.
• New job projections and if new or relocating (from where ?).
• Water and sewer needs.
• Type of business activity and any hazardous waste or by- products used, generated, or discharged.
Review
The Incentive Committee, comprised of town employees appointed by the town manager, shall review the
request and information on an individual basis using the Town of Gainer guidelines. The town Manager
shall present the Incentive Committee recommendation to the Board of Aldermen.
In reviewing requests, among the things the Town will consider are:
Amount of new investment in the community.
Number and type of new jobs being created.
• Average wage rate.
• Level of state or county participation.
• Timeframe for investment/job creation.
• Potential for expansion.
..... _.......... .
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• Reputation of the company.
• The presence of competition for the project.
• Impact on the quality of life for Garner citizens.
• Corporate headquarters.
• Past record of community involvement.
• Amenities provided by mixed use retail (not strip center).
The Incentive Committee may recommend full, partial, or no incentive based upon its review of the
application and the applicant's consistency with the criteria described in this policy. The Board of
Aldermen may authorize full, partial, or no incentive after receiving the staff recommendation.
Community Involvement
It is expected that any entity that receives public funds by way of an incentive, will be involved in the
community or local non profits, either actively or financially. The entity shall become a member of the
Garner Chamber of Commerce for at least as long as the incentive payments are being granted. The
industry will encourage its employees to become involved in community organizations and programs.
Companies receiving incentives are strongly encouraged to hold job fairs in Garner to employ as many
Garner citizens as possible to fulfill their employment needs.
Public Hearing
After economic development incentives are negotiated, but prior to being consummated by contract, a
public hearing shall be held in accordance with NCGS § 158 -7.1 et seq. and other applicable laws. At its
discretion, the Town Board may authorize that a public comment period be held when no public hearing
is required.
Payment
Incentives will be paid after all taxes, fees and charges due the Town are paid. Documentation of taxes
paid and request for reimbursement shall be presented to the Town prior to May 1st of each year.
The industry must enter into a binding incentive contract with the Town of Garner and is therefore subject
to any reporting or repayment requirements contained within.
Knightdale
(.Overview
In order to expand economic development opportunities for the town of Knightdale, it is the policy of the
Town to stimulate economic activity and to create and maintain sustainable jobs for the citizens of the
Town in strategically important industries.
The Town of Knightdale will make those necessary and reasonable efforts to advance the Town's goal of
achieving a 60% residential and 40% non- residential tax base distribution, and the purpose of this
Economic Development Policy & Development Grant Program is to stimulate economic activity and to
create new jobs in the Town of Knightdale.
This Policy will promote the general welfare and confer, as its primary purpose and effect, benefits on
citizens throughout the Town and Wake County through the creation of new jobs, an enlargement of the
overall tax base, an expansion and diversification of the Town's industrial base, and an increase in
revenue to the Town, the county, and the State of North Carolina.
The Town of Knightdale announces this Economic Development Policy and enacts the following
Development Incentives Program:
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Coverage
Grants will be available to new and existing industries, including new industrial, manufacturing,
warehousing, distribution, flex - space, office parks, and expansions of existing industrial projects in the
Town of Knightdale. Existing industries qualify only for that portion of expansion that represents "new"
investment. These policy guidelines are not retroactive to any project which has been announced prior to
the adoption of these policy guidelines.
This policy shall apply to all lands within the corporate limits of Knightdale or properties that qualify for
annexation tinder North Carolina General Statutes, unless otherwise determined by the Town Council.
Requests for grants are evaluated and negotiated on a case by case basis.
Grants
Basis: the actual tax value of the building and equipment as recorded on the Wake County Revenue
Department tax roll will be used to calculate the maximum grant amount. This number may be different
from the total project cost often discussed in preliminary meetings, a number that often includes site
work, land and other costs to the developer but which are not taxable.
Maximum Grant Amount: One percent (1 %) of the total investment of new or expanded actual tax value
of the building and equipment shall equal the maximum grant amount. The 1% will be applied to the
value of the project as presented on the first tax bill that is based on a complete 12 month period for the
new value, after completion of the project, unless negotiated otherwise. This reimbursement will begin at
95% of that new property tax revenue the first year; 85% the second year and 75% for all subsequent
years until the maximum incentive amount is met or 5 years, whichever comes first.
The base year shall be the tax year preceding the start of the new project or expansion, or as agreed upon
in the contract. If there is a clerical or administrative difficulty or error solely caused by the Wake County
Tax Assessor's Office that impacts the determination of the first year value for purposes of interpreting
this policy, then the Town Manager may recommend the adjustment of the appropriate first year
calculation to ensure fair and accurate compliance with this policy.
Minimum Investment: Five million dollars ($5,000,000) of new, taxable buildings and equipment is the
minimum to qualify for grants described in this policy.
Corporate Headquarters Incentive Criteria
The Town will provide a one -half percent (.5 %) additional grant to corporate headquarters if the project
meets the following criteria:
Corporate headquarters means the building or buildings that the principal executive officers have
designated as their principal office [see North Carolina G.S. 55 -140 (17)]. The Town requires that the
corporate headquarters have at least fifty (50) or more full -time employees who are located in the building
or buildings. If the project is an expansion, the expansion must employ a minimum of fifty (50) additional
full -time employees. The wage must be greater than the median wage for Wake County. The jobs shall be
retained at the approved level for as long as grants are received. The project must meet all other criteria
described above.
Tax Increment Financing
In certain rare cases Tax Increment Financing (TIF) may be a desired incentive offered to finance
infrastructure that is part of a major new development project. Generally, a project must meet the
requirements of the Wake County Project Development Financing Policy (originally adopted 4 -16 -07) in
order to receive consideration for TIF from the Knightdale Town Council.
Public Hearing
The Town Council will advertise and conduct a public hearing as required by G.S.158- 7.1(a) prior to
approving any grant authorized by this Policy. All grants approved under this policy will be in the form of
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a contract approved by the Town Council, Town Attorney and Finance Officer.
Indemnity
All grant agreements approved by the Knightdale Town Council shall indemnify and hold harmless the
Town of Knightdale from legal challenges to the agreement.
Additional Performance Requirements
Grant agreements may include additional performance requirements of the grant recipient.
Morrisville
(.Overview
In order to expand economic development opportunities for the Town of Morrisville that could diversify
or expand the tax base, offer improved employment opportunities for its citizens, and promote the
economic growth and welfare of the business and industrial community, the Town Board of
Commissioners establishes incentive guidelines to encourage new industry location decisions within the
Town, as well as to assist existing business expansions.
li. Program Parameters
The Town of Morrisville Incentive Policy involves a contractual agreement between the Town and a new
or existing industry that would allow for a performance -based cash grant based on the criteria established
in Part III of this document. The Town will require the industry to be current in payment of any and all
taxes, fees and /or charges for an incentive to be paid. The Town will require, as a part of the contractual
agreement, a provision for reimbursement of any incentives to the Town if any terms of the contract are
not met. Any and all guidelines in the Incentive Policy shall be subject to G.S. 158 -7.1. Each project will
be evaluated and negotiated on an individual basis by Town Staff using the Town of Morisville's
guidelines. Town Board of Commissioners will be kept apprised of negotiations. Any incentive proposal
must be approved by the Board of Commissioners in a public meeting before it is finalized. Changing
economic conditions may necessitate the Board of Commissioners to modify, amend, or even terminate
the incentive policy subject to compliance with any incentives in effect at that time. All decisions are
based on availability of fiords.
Incentive Policy Criteria & Considerations
The opportunity to apply for the Incentive Program will be available to new and existing industries.
Existing industries qualify only for that portion of expansion that represents "new" investment.
h7 reviewing incentive requests the Town will take into consideration the following criteria:
• Number of new jobs being created
Average wage rate
• Amount of new investment in the community
Whether the company provides benefits to its employees
Whether there is State or County participation in the project
• Eligibility for One North Carolina Funds
• Timeframe for investment/job creation
hrvestment for a new industry requesting an incentive should be $10,000,000 taxable value in buildings
and equipment and a minimum of 50 new jobs.
Investment for an existing industry requesting an incentive should be $5,000,000 in taxable value in
building expansion/equipment and some sustainable newjob creation.
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The project for either new or existing industries must not have been started prior to the request for the
incentive.
Creation of jobs through either new development or expansion must have a wage rate equal to or greater
than the average hourly wage of all industry in the county as established quarterly by the Employment
Security Commission. Jobs must be full -time (at least 35 hours per week and wages subject to
withholding) and employer must offer health insurance to full -time employees and pay at least 50% of
employee premium.
The timeframe to meet performance criteria and for the incentive to be paid shall be no longer than eight
(8) years.
No incentives are being recommended for businesses that are exclusively retail at this time, but could be
explored in the future if deemed necessary.
A payment schedule will be outlined in the contract. Incentives will be paid after current year ad valorem
taxes are paid by the requesting industry.
Other criteria for consideration may include but are not limited to: site specific issues that have an impact
upon local infrastructure responsibilities, site specific issues that have an impact upon other local
resources such as public safety, public works, etc.
The industry meeting the criteria and desiring the incentive shall submit a written request to the Town's
economic development office.
Upon request by an applicant industry and after taking into consideration the importance of proposed
investments by an applicant industry to the local economy under the current circumstances, subject to the
approval of the Town Board, the foregoing criteria may be modified and/or waived in order to qualify an
applicant industry in those instances where documentation is presented by the applicant industry that a
significant number of permanent jobs will be created and substantial capital investments, in addition to
the initially proposed investments, are scheduled for implementation in the immediate future.
The industry must enter into a binding economic development contract with the Town of Morrisville and
is therefore subject to any reporting or repayment (clawback provision) requirements contained therein.
The Town Board of Commissioners will hold the necessary public hearing as required under statute and
approve the signing of the contract between the Town and the requesting industry.
Stewardship of the natural environment, including incorporation of alternative energy technologies, use of
recycled materials in construction, as well as other "green" building concepts.
Innovation in design concept and plan
Consistency with and furtherance of Town planning and development objectives, such as downtown
development, provision of greenways or other recreation and alternative transportation facilities as well as
mixed -use.
III. Incentives
A benchmark of one percent (1 %) of the total investment of new or expanded tax base will be used by
staff to guide discussions and make recommendations to the Town Commissioners. (These funds will be
budgeted in the long -range financial plan and be paid by the new or expanded tax base from an Economic
Development Fund.)
Other incentives could be considered in the form of infrastructure such as streets, traffic signals and/or
sewer line extensions.
IV. Corporate Headquarters Incentive Criteria
The Town will consider a one -half percent (.5 %) higher incentive to corporate headquarters if the project
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meets the following criteria:
Corporate headquarters means the building or buildings that the principal executive officers have
designated as their principal corporate, regional or divisional office in the U.S. [See North Carolina G.S.
55 -140 (17)]. The Town requires that the corporate headquarters have at least fifty (50) or more full -time
employees who are located in that, building or buildings.
The headquarters and/or expansion must be located within the town limits of Morrisville. If the project is
an expansion, the expansion must employ fifty (50) or more new full -time employees.
The project must meet all other criteria as listed in Part III of this document.
Incentives will be paid after all taxes, fees and charges due the Town are paid..
Wendell
I. Objectives
The purpose of this Economic Development Incentive Policy for New and Expanding Businesses is to
enhance the Town of Wendell's ability to attract new industrial and commercial development and to
encourage expansion of existing businesses within the town's existing or proposed corporate limits. This
policy has been developed to promote the general economic development goals outlined in the Town of
Wendell Comprehensive Plan, adopted in April, 2007, which included 1) diversifying and increasing the
town tax base, 2) creating a diverse workforce, and 3) increasing downtown and in -town retail and dining
options "to make Wendell a self - sustaining community — a place where people can both live and work."
This policy authorizes the Town of Wendell Board of Commissioners to make direct grant appropriations
from town tax revenues and to provide development incentives to encourage industrial and office park
development and commercial/mixed use /service industry and business investment in Wendell. Individual
incentives are outlined in Section III of this policy.
II. Policy Statements
Disclaimer: Appropriations from town funds and related development incentives to promote economic
development are not made as a matter of right but are made as a privilege to the industry or business at
the sole discretion of the Town of Wendell Board of Commissioners. Even if the applicant industry or
business meets all the eligibility requirements outlined in Section I11, the town is not obligated to provide
an incentive package. As outlined in Section V of tins policy, all proposed economic incentive
applications from new and existing industries and businesses will be carefully evaluated by the town staff
prior to submittal of each completed incentive application and a written staff recommendation to the
Board of Commissioners for final evaluation. Each proposed new industry /business development or
industry/business expansion will be reviewed to ensure consistency with the land use objectives and
development goals defined in the Town of Wendell Comprehensive Plan, and with regard to proposed
water and sewer allocations. Also, changes in economic conditions may necessitate action by the Board of
Commissioners to modify, amend, or even rescind this incentive policy, subject to compliance with any
incentive agreements in effect at the time of rescission.
Geographic Eligibility: This policy shall apply to all lands within the current corporate limits of Wendell
or properties that qualify for annexation under North Carolina General Statutes. Actual economic
development incentive grants will not be made to businesses until annexation procedures are complete
and the new investment can be formally assessed and taxed by Wake County on behalf of the Town of
Wendell.
Legally- Binding Commitment: Each industry or business that receives an economic development
incentive grant under the terms of this policy shall be required to execute a legally- binding agreement
with the Town of Wendell that outlines the amount and terms of the grant, the specific investment amount
and job creation goals (if applicable) guaranteed by the grantee, and all other agreed terms and conditions
551 Page
including land use incentives offered by the town or qualitative evaluation factors (site improvements,
higher wage structure, employee benefits, etc.) proposed by the grantee.
Investment Calculation: The Wake County Revenue Department will determine the value of new
investment utilized to determine threshold eligibility and grant amounts under the terns of this policy.
The investment value shall be the initial ad valorem tax assessment of the new buildings and equipment.
The value of land, site work, inventory, and rolling stock including automobiles, trucks, tractors, trailers,
or other licensed vehicles shall not qualify for purposes of the investment calculation.
Job Creation: "New jobs" shall be defined as new full -time employees (minimum 35 hours per week and
subject to withholding) required to fill positions in the new or expanded business in Wendell. Employee
transfers (except transfers from other locations in the state of North Carolina) will qualify as "new jobs"
under the terms of this policy.
Where the job creation threshold applies in Section III of this policy, grantees must maintain an average
wage rate that is at least 100% of the average wage rate for Wake County as determined by the NC
Commerce Finance Center and underwrite at least 50% of the health insurance premiums for all new full -
time employees. In general, businesses will be required to create new jobs in proportion to the percentage
of their total incentive grant requested to date, with grant payments deferred or reduced when annual job
creation goals are not met (see Section VI).
Grant Payments: The initial grant payment made under the terms of the legally - binding agreement
prescribed by this policy will not be paid until all fees and charges due to the town for development
activity are paid, and proof is received from the Wake County Revenue Department that county and town
taxes have been paid for the year of the initial tax assessment that includes the new investment value
utilized to calculate the base grant amount. Requests for reimbursement of town taxes (grant payments)
shall be presented to the town prior to March 31st following the previous year's tax assessment.
Grant Adjustments: The town and the grantee may elect to negotiate a "base grant" based on the initial
amount (first taxable year) of the proposed investment and adjust the grant amount and performance
period upward over time as additional building improvements /equipment are added at the new /expanded
business site. However, the total grant amount received by any individual grantee under the terms of this
policy shall not exceed the maximum award specified in Section III, below.
Confidentiality: Financial information, employment profiles, site plans, etc., submitted to the Town of
Wendell for the town's review and consideration of applications for economic development incentives
will be kept strictly confidential. Review of required submittals and the actual application for incentive
funds shall be limited to designated representatives of the town staff and the Town of Wendell Board of
Commissioners. No information related to an application for incentive funds will be made available for
public review unless disclosure is approved in writing by the Town Manager and the designated
representative of the business snaking application to the town for incentive funds, unless such disclosure
is otherwise required by North Carolina statute.
III. Economic Development Incentives
A. New Industries /office Parks
Eligible Applicants: Eligible applicants for New Industry/Office Park grants include new manufacturing
facilities; warehousing, distribution, and transportation facilities; and service industries (including office
park facilities). New retail businesses are eligible for assistance under the Small Business incentive (see
Section IILC).
Investment Threshold: In order to receive consideration
from the Town of Wendell, New Industries /Office Park s
and/or equipment (exclusive of land) of five million d
Section ILD, above.
561Page
for an economic development incentive grant
must propose a new investment in building
ollars ($5 million) or greater as calculated in
Job Creation Threshold: All New Industries /Office Parks must propose to create at least twenty (20) new
jobs (defined in Section ILE) during the performance period defined in the legally - binding agreement
between the grantee and the Town of Wendell.
Incentive Amounts: New Industries /Office Parks meeting the investment/job threshold requirements
outlined above will be considered for an incentive grant equivalent to 75% of the Town of Wendell local
property tax assessment on the new investment for each year over a total five -year period. For cacti
additional $5 million in investment, applicants will be considered for incremental increases of 5% in tax
assessment deductions, up to a maximum grant amount of 95% of the local tax assessment for each year
over a total five -year period (minimum $25 million investment).
Examples: A threshold grant for a $5 million New Industry /Office Park investment would be calculated
as ($5,000,000 1100 x 0.49), or $24,500 per year x 75 %= $18,375 x 5 years = $91,875. A maximum grant
for a $50 million New Industry /Office Park investment would be calculated as ($50,000,000 /100 x 0.49),
or $245,000 per year x 95% _ $232,750 x 5 years = $1,163,750.
B. Industry /Office Park Expansions
Eligible Applicants: Eligible applicants for Industy /Office Park Expansion grants include existing
manufacturing facilities; warehousing, distribution, and transportation facilities; and service industries
(including office park facilities). Existing retail businesses are eligible for expansion assistance under the
Small Business incentive (see Section III.Q.
Investment Threshold: In order to receive consideration for an economic development incentive grant
from the Town of Wendell, Industry /Office Park Expansions must propose a new investment in building
and/or equipment (exclusive of land) of one million dollars ($1 million) or greater as calculated in Section
ILD, above.
Job Creation Threshold: All Industry /Office Park Expansions must propose to create at least five (5) new
jobs (defined in Section ILE) during the performance period defined in the legally - binding agreement
between the grantee and the Town of Wendell.
Incentive Amounts: Eligible Industry/Office Park Expansions meeting the investment /job threshold
requirements outlined above will be considered for an incentive grant equivalent to 75% of the Town of
Wendell local property tax assessment on the new investment for each year over a total five -year period.
For cacti additional $1 million in investment, applicants will be considered for incremental increases of
5% in tax assessment deductions, up to a maximum grant amount of 95% of the local tax assessment for
each year over a total five -year period (minimum $5 million investment).
Examples: A threshold grant for a $1 million Industy /Office Park Expansion would be calculated as
($1,000,000 /100 x 0.49), or $4,900 per year x 75% = $3,675 x 5 years = $18,375. A maximum grant for a
$10 million Industry /Office Park Expansion would be calculated as ($10,000,000 /100 x 0.49), or $49,000
per year x 95% = $46,550 x 5 years = $232,750.
C. Small Business incentives
Eligible Applicants: Eligible applicants for Small Business grants include new or existing restaurants,
retail establishments, lodging facilities, service establishments (including smaller- scale, compatible office
park facilities), and mixed -use development located in the existing or proposed corporate limits of the
Town of Wendell.
Investment Threshold: In order to receive consideration for an economic development incentive grant
from the Town of Wendell, Small Business applicants must propose a new investment in building and/or
equipment (exclusive of land) of one hundred thousand dollars ($100,000) or greater as calculated in
Section ILD, above.
Job Creation Threshold: There is no job creation threshold for Small Business grants
571 Page
Incentive Amounts: Small Businesses meeting the investment threshold requirement outlined above will
be considered for an incentive grant equivalent to 75% of the Town of Wendell local property tax
assessment on the new investment for each year over a total five -year period. For each additional
$100,000 in investment, applicants will be considered for incremental increases of 5% in tax assessment
deductions, up to a maximum grant amount of 95% of the local tax assessment for each year over a total
five -year period (minimum $500,000 investment).
Examples: A threshold grant for a $100,000 Small Business investment project would be calculated as
($100,000 /100 x 0.49), or $490 per year x 75 %= $367 x 5 years = $1,835. A maximum grant for a $1.5
million Small Business investment project would be calculated as ($1,500,000 /100 x 0.49), or $7,350 per
year x 95% _ $6,982 x 5 years = $34,910.
D. Non - Financial Incentives
The Town of Wendell may elect to offer potential economic development incentive grantees an incentive
"package" including non - financial incentives or marginal increases in the incentive grant defined in
Section III to encourage investment. Factors considered in this decision will include the proposed
development's consistency with the stated objectives of the Town of Wendell Comprehensive Plan and
the investor's provision of additional benefits above and beyond the actual increase in the local tax base.
Qualitative factors to be considered in the award of additional incentives are outlined in Section V.B.
Examples of non - financial incentives include reductions in parking requirements, density bonuses,
property donation, and technical assistance with the preparation of other incentive grant applications. The
town may also consider delay of annexation as an incentive to attract a new business eligible for an
incentive grant as defined in Section III. In some cases, delay of annexation may be more attractive to a
new investor than a local tax incentive.
IV. Application Process
A request for an economic development incentive grant shall be directed to the Town Manager.
Applications may be obtained through the Town Manager's office. Applications are to be completed in
their entirety. Strict confidentiality will be maintained during the application/evaluation process (see
Section I). The Town Manager reserves the right to obtain information necessary to properly evaluate the
application before delivering the completed application with a written recommendation to the Board of
Commissioners. Requested information will include, but not necessarily be limited to, the following:
• Type of business activity and any hazardous waste or by- products used, generated, or discharged
Proposed site location/site plan
• Site survey and legal description of the property /documentation of ownership
• Pre - investment Wake County tax valuation
• Basic business plan for feasibility assessment
• Financial statements
• Total amount of capital investment (including land, inventory, etc., although not included in
calculation of grant amount)
• Existing employment profile (expansions /relocations)
• New job projections/local job projections
• Wage structure and benefits
• Water and sewer needs
• Transportation/access needs
If the applicant is working on a concurrent application for a state or Wake County incentive or grant, the
Town Manager will request portions of required information from county or state agency representatives
working on each concurrent application to help maintain confidentiality and reduce the administrative
5g1Page
burden on the applicant business.
V. Evaluation and Award Of Incentive
Initial Review: The Town Manager will review the initial application and verify that the applicant meets
the eligibility/threshold requirements outlined in Section III, and will then confer with the applicant and
request additional information until the application is substantially complete.
Staff Review: The Town Manager will distribute the completed application to appropriate staff personnel
to properly ascertain the impact of the proposed business investment on the town's land use standards and
infrastructure. In reviewing a grant request, the Town Manager and staff personnel will consider the
following factors:
• Amount of new investment in the community
Number and type of newjobs being created vs. job transfers (relocation)
• Number of new jobs to be filled by existing town residents
Job training incentives
Wage structure
Employee benefits offered
Amount of state and/or Wake County incentives
Timeframe for investment/job creation
Potential for expansion
Business plan and financial history of the company
• Presence of competition for the project
• Impact on the quality of life for Wendell citizens
Past record of community involvement and proposed community involvement
• Compatibility of proposed development with the Town Comprehensive Plan
Increase in marginal tax base vs. increase in marginal water and sewer usage
Impact on traffic flow /access limitations
Green teelmology /environmental impact
Review By Elected Officials: Following a final review session with the town staff, the Town Manager
will provide a written recommendation of full, partial, or no incentive to the Town of Wendell Board of
Commissioners based upon staff review of the application and the applicant's consistency with the criteria
described in this policy. The Town Manager may also recommend a grant award in excess of the
investment formula award calculated in accordance with Section III of this policy if the project is deemed
deserving based upon consideration of the qualitative factors outlined above. The Town Manager will
refer each completed incentive application and his written recommendation to the Town of Wendell
Board of Commissioners, who will in turn review each application in closed and/or open session as
deemed appropriate and make a final decision of incentive award by majority vote. The contents of all
applications for Town of Wendell economic development incentives are to remain confidential until a
final decision of award has been made by the Board of Commissioners and until disclosure is approved in
writing by the Town Manager and the designated representative of the business making application to the
town for incentive funds, unless such disclosure is otherwise required by North Carolina statute (see
Section B.I).
Public Hearing: Prior to approval of an economic development incentive grant, the Town of Wendell
Board of Commissioners shall advertise a public comment period and a public hearing shall be advertised
and held in accordance with NCGS 158 -7.1 et seq. and other applicable laws.
591Page
VI. Performance And Monitoring
General Performance Standards: Each industry or business that receives an economic development grant
under the terms of this policy shall build or expand its proposed facility and meet investment and job
creation goals within the time specified in the legally - binding grant agreement executed by the Town of
Wendell and the grantee following approval of an incentive grant. In the event that a grantee fails to meet
any of the provisions of the grant agreement, including qualitative proposals such as an enhanced wage
structure or employee benefits that influenced determination of the grant amount or the evaluation
process, the town may adjust the amount of the grant to the company, defer grant payments, or withdraw
the grant entirely. In general, penalties will be assessed pro rata in accordance with any reduced number
of jobs or amount of investment outlined in the grantee's original application for an economic incentive
grant.
Monitoring: The Town Manager will request annual performance reports from businesses provided with
incentive grants during the performance period included in the legally - binding agreement. Performance
reports will include all objective data utilized by the Town Manager to determine the amount of the grant
award, including lumber and type of new jobs, wage and benefit structure, cumulative amount of
investment to date, description of actual improvements (buildings and equipment), and water and sewer
usage.
Zebulon
Policy Objective
The objective of this policy is to support the development of an economic environment that attracts or
encourages new investment, creates new jobs, and results in a healthy and diverse tax base.
Eligible Projects
An industrial company may be eligible for a Business Inveshment Grant if they meet both the New
Investment Threshold and the New Jobs Threshold as described below.
New Investment Threshold
New or existing industrial companies may be eligible for a business investment grant for new investments
which exceed $10,000,000. New investment is defined as improvements to real estate, machinery,
equipment and other business property located within the corporate limits of Zebulon or properties that
qualify for annexation under North Carolina General Statutes. The value of the land is not included in the
calculation of new investment. New investment must exceed $10,000,000 in assessed value as determined
by the Wake County Revenue Department.
New Jobs Threshold
New or existing industrial companies are eligible for a business investment grant when the investment
threshold is met and at least 50 jobs are created. Jobs are defined as a net increase in the company's
number of full -time personnel employed at a facility located within the Town of Zebulon corporate limits.
A full -time employee is defined as a person who is employed by the company for at least 35 hours per
week and whose wages are subject to withholding. The average wage for the new jobs must pay at least
the average wage for Wake County by occupation as provided by the Employment
Security Commission of North Carolina.
The company must also agree to provide health insurance in at Least the minimum amount required for tax
credits under the Williams S. Lee Act, as it exists on the date of the approval of this policy. Under these
provisions, a company must provide health insurance for full -time positions and pay a minimum of 50
percent of the premiums.
6oIPage
Policy Guidelines
18. All business investment grants will be considered for industries meeting the new investment and new
job thresholds. The Board of Commissioners is not obligated to provide an incentive package to any
company.
19. All projects will be considered on a case-by -case basis. The Town will consider a number of factors
in addition to the items previously mentioned when determining consideration and approval of a
business incentive grant, including, but not limited to:
Types of new jobs created
Potential for expansion
Reputation of the company
The presence of competition for the project
Water and sewer capacity needs of the company
Impact of project on quality of life for Zebulon citizens
Any information relevant to the project may be requested by the Town from the corporation to
evaluate the merits of a request, including financial balance sheets and pro forma statements.
20. The amount of the grant to be paid or incentive to be provided by the Town shall not exceed 1.50
percent of the assessed value of the new investment, and shall be paid over a period of up to five
years. In no event shall the grant amount of any single year exceed the amount of ad valorem taxes
paid by the company on the new investment in that calendar year.
21. The actual amount of the grant payments or incentives provided may be different from the total
project costs discussed by the Town and the corporation. Agreements will be written based on
estimates provided by the company.
However, actual assessed value will differ from investment costs since investment costs include site
work and other corporation -borne costs not used in determining assessed value. Also estimated costs
do not factor in the effects of depreciation on assessed value.
22. Expenditure of public funds under this policy is not authorized without a legally binding agreement
approved by the Board of Commissioners and signed by all parties. Such an agreement will require:
that the assessed value of the new investment be confirmed by the Wake County Revenue
• Department and that all property taxes are paid prior to providing a grant payment;
that the required number of jobs for each calendar year that the grant is in effect be confirmed by
the North Carolina Employment Security Commission prior to providing a grant payment; and
provisions for a payback schedule of some or all public funds authorized for this project upon
default of the terms of the policy by the corporation.
23. All grant agreements may be subject to other performance criteria that will be outlined in the business
investment contract between the company and the Town. In the event that a company fails to meet
any of the provisions of the contract, the Town may adjust the amount of the grant to the company or
withdraw the grant entirely.
24. These policy guidelines are not retroactive to any project which has been announced prior to the
adoption of these policy guidelines. These guidelines are in effect until such time as amended by the
Board of commissioners.
6iIPage
Appendix VI. Chatham County and Siler City Incentives Policies
621Page
CHATHAM COUNTY INCENTIVE POLICY
10 -20 2 Partial Employer Paid Health Insurance 1
51 -75 7 Retirement Benefits 2
044 E— g?" %ShON-
101 -150 12 Employer Paid Vacation 2
200+ 20 Total Possible Points 10
Under $500,000 1 Less than County Average 0
Greater than County Average, But Less than State
$5,000,000- $14,999,999 10 Average 4
525.000.000 and Above 20 Above the State Average 10
10-20 1 Reuse of Existing Building
Location in Existing Industrial Area, not Central
51 -75 5 Carolina Business Campus
fi itfD _ i nc�tioxr G r af�Ca
cat usu ses �r s
101 -200 9 Location in LEED Certified Building
Total Possible Points 10 Total Possible Points 15
Presence in Identified Attraction Industry Cluster 6
Company Headquarters 6
rest �iar
'tit C<rsou aFt_t_ stg _-
Totac l
Possible Points 15
This model approximates the following weights out of a 100 possible points:
Categ9;ry, r _ , Poinls,Possille
Jobs Wtitiber. Quality, Waues, Hiring Residents) 50 points
nta I Impact 1s
The allocation in the model represents the desire and need for qua Iityjobs in Chatham County,
while balancing the local governments' need for additional capital investment (and associated
property tax revenue), desire to preserve /protect the natural environment by focusing
development to certain designated areas, and interest in targeting identified industry clusters.
Depending on their score, new companies and existing company expansions are eligible to
qualify for, but not guaranteed, a financial incentive grant based on the percentages of annual
property taxes paid for each year for a five year period as outlined below. The County and
Chatham County EDC will continue to utilize qualitative criteria outlined in this document and
other policy documents to approve, reject, and /or modify the grant amount.
70% 1 75% 1 80% 1 90% 1 90%
500% 1 55% 1 60% 1 70% 1 75%
35% 1 40% 1 50% 1 60%
Town of Siler City
Economic Development Incentive Policy
WHEREAS, the Town of Siler City Board of Commissioners feels that it is the best interest for
Siler City to provide economic development incentive grants to new and expanding businesses
and industries within the Town of Siler City's Corporate Limits pursuant to authority granted by
NCGS §158-7.1 and interpreted by the NC Supreme Court in Maready v. City of Winston Salem,
342 N.C. 708 (1996) and;
WHEREAS, economic development incentive grants to new and expanding businesses and
industries are based on expanding the property tax base and job creation as determined by the
Town Board of Commissioners, and;
WHEREAS, the Siler City Board of Commissioners hereby establishes the following Economic
Development Incentive Plan:
J. There is no right or entitlement to economic development incentive grants. All such grants
shall be made at the discretion of the Siler City Board of Commissioners;
2. The business or industry seeking an economic development incentive grant must first submit
a letter to the Town Manager requesting an economic development incentive grant. The
written statement must include the following information:
a. Estimated property tax value increase;
b. Explanation of what products or service will be produced at the facility;
c. Number of jobs to be created, the average weekly wage to be paid, and benefits to
be provided for these jobs;
d. Estimated schedule for completion of construction; and
e. A preliminary site plan of the proposed facility;
3. New businesses and industries shall submit a certification that the company would not make
the investment in Siler City without the Town's assistance;
4. Development projects must not have started construction prior to Town Board consideration
of the economic development incentive grant;
5. At a time agreeable to the business or industry, given it's confidentiality concerns, a public
notice and a public hearing regarding the proposed grant will be given/held;
6. The business or industry must enter into a binding joint economic development agreement
with the Town (including being subject to any reporting or repayment (claw back provision)
requirements contained herein;
7. The business or industry will provide periodic verification of its compliance with the
requirements to which it has agreed;
8. New or expanding businesses or industries may qualify to receive an economic development
incentive grant based upon the actual value, schedule and payment of local property taxes for
a period of up to five tax years;
9. The Town will require the business or industry to "pray in full' annually total property taxes
due (If property taxes are not paid prior to January 5` , then agreement is void);
10. If the business or industry meets the specific criteria as outlined in a formal agreement, then
an amount determined by multiplying the property tax payment paid by the business or
industry by the percentage figure derived from the "Investment and Job Creation Chart' may
be granted to the business or industry for five consecutive tax years in the form of an
economic development incentive grant;
11. A business or industry shall be defined as any company that engages in manufacturing,
assembling, fabrication, processing, warehousing, distribution, data processing, software
development, central administrative office, telecommunication, research and development
facilities, biotechnology, information technology, corporate headquarters, or any other
business or industry as allowed by NCGS §158 -7.1 at the discretion of the Town Board of
Commissioners;
12. Retail space or general commercial facilities shall be excluded from the definition of
business or industry.
Investment and Job Creation Chart
New or Expansion
Amount
0 — 39
Jobs
40 - 74 Jobs
75 - 99 Jobs
100 Jobs
and over
$500,000 - $2,499,999.99
55%
60%
65%
70%
$2,500,000 - $7,499,999.99
60%
65%
70%
75%
$7,500,000 and tip
65%
70%
75%
80%
• Investment dollar amount shall be determined by the increase in assessed value of real
property.
• Number of jobs shall be determined by counting each employee that averages 100% and
above the average weekly wage for Chatham County during a calendar year.
• Average weekly wage for Chatham County shall be determined by the most recent quarterly
report for Chatham County provided by the State of North Carolina.
• Average weekly wage for employees of the business or industry shall be determined by the
payroll data of the business or industry.
WHEREAS, the Siler City Board of Commissioners reserve the right to consider each project
individually and to adjust the incentive package based on current conditions or circumstances.
NOW THEREFORE BE IT RESOLVED, that this Economic Development Incentive Policy
may be offered to new and expanding industries within the Siler City Corporate Limits that meet
the above qualifications and are willing to sign an incentive agreement which describes the
responsibilities and obligations of all parties.
In a motion made by Mayor Pro Tem John Grimes, and seconded by Commissioner Larry
Cheek, the Town of Siler City Economic Development Incentive Policy was adopted by the
following vote 5 -0.
Ayes: Commissioner Helen Buckner, Commissioner Larry Cheek, Mayor Pro Tern John Grimes,
Commissioner Tony Siler, and Commissioner Guy D. Smith
Nays: None
Adopted on the 7th Day of May, 2007
Charles L. Turner, Mayor
ATTEST:
Karen C. Alman, Town Clerk
Appendix VII. Alamance Incentives Policies
The following is published on the Choose Alamance website,
htTir / /wNi,%v.choose alamauce.com/incentives /:
There are two separate but overlapping levels of local government — county and city /town. ',Aqule all
properties are within the county jurisdiction, not all properties are within an incorporated city/town. Each
level of local government may, separately, consider and provide incentives. The primary local incentive
is a cash grant. The amount of a grant is negotiable but based, primarily, on the capital investment
associated with the project. Terms and conditions for grant payments are also negotiable based on the
particular needs of the client and project and are codified in written performance agreements between the
Company and the local government unit(s). Other local incentives may include utility
upgrades /extensions and /or rate incentives, expedited regulatory processes, and/or various fee /charge
waivers for sitetbuilding development costs. These are also considered and offered based on the specific
project requirements.
Recognizing the competitive environment and the compressed timeframes our clients have, cash grant
offers can be proposed fairly quickly. However, all such offers are only tentative until approved at formal
public hearings (this is in accordance with state law). State level incentives do not require public
hearings.
All project details, including local incentives negotiations and offers, may remain confidential until the
public hearing.
City Of Burlington Economic Development Incentive Policy
1. Overview
In order to expand economic development options for the City of Burlington that could diversify or
expand the tax base, offer improved employment opportunities for its citizens and promote the economic
growth and welfare of the business and industrial community, the City Council would establish
inducement guidelines to encourage new industry location decisions within the City, as well as to assist
existing industrial expansions.
Program Parameters
The Burlington Incentive Policy involves a contractual agreement between the City of Burlington and a
new or existing industry that would allow for a financial incentive based on the criteria established in Part
III of this document. The City will require the industry to be current in payment of any and all taxes, fees
and/or charges for an incentive to be paid. The City will require, as a part of the contractual agreement, a
provision for reimbursement of any incentives to the City if any terms of the contract are not met. Any
and all guidelines in the Incentive Policy shall be subject to G.S. 158 -7.1. Each project will be evaluated
and negotiated on an individual basis by City Staff using the City of Burlington's guidelines. City Council
will be kept apprised of negotiations. Changing economic conditions may necessitate the City Council to
modify, amend, or even terminate the incentive policy subject to compliance with any incentives in effect
at that time. All decisions are based on availability of funds.
Incentive Policy Criteria
Incentives will be available to new and existing industries. Existing industries qualify only for that
portion of expansion that represents "new" investment.
Investment for a new industry requesting an incentive should be $8,000,000 taxable value in buildings
and/or equipment.
Investment for an existing industry requesting an incentive should be $1,500,000 in taxable value in
681 Page
building expansion and/or equipment.
The project for either new or existing industries must not have been started prior to the request for the
incentive.
Creation of jobs through either new development or expansion must have a wage rate equal to or greater
than the average hourly wage of all industry in the county as established quarterly by the Employment
Security Commission. [11
The payback period for any and all incentives shall be no longer than five (5) years.
No incentives are being recommended for connnercial /retail -type businesses at this time, but could be
explored in the future if deemed necessary.
Incentives will be paid after current year ad valorem taxes are paid by the requesting industry.
Other criteria for consideration may include but are not limited to: site specific issues that have an impact
upon local infrastructure responsibilities, site specific issues that have an impact upon other local
resources such as public safety, public works, etc.
The industry meeting the criteria and desiring the incentive shall apply in writing.
Upon request by an applicant industry and after taking into consideration the importance of proposed
investments by an applicant industry to the local economy under the current circumstances, subject to the
approval of the City Council, the foregoing criteria may be modified and/or waived in order to qualify an
applicant industry in those instances where documentation is presented by the applicant industry that a
significant number of sustainable jobs will be created and substantial capital investments, in addition to
the initially proposed investments, are scheduled for implementation in the immediate future.
The industry must enter into a binding economic development contract with the City of Burlington and is
therefore subject to any reporting or repayment (clawback provision) requirements contained therein.
City Council will hold the necessary public hearings as required under statute and approve the signing of
the contract between the City and the requesting industry.
Incentives in the amount of a minimum of one per cent (1 %) of the total investment of new or expanded
tax base. [21 (These funds will be paid from ad valorem taxes created by the new or expanded tax base
from an Economic Development Fund.)
Other incentives could be in the form of infrastructure such as streets; environmental testing/site
mitigation; clearing, grading and erosion control measures; water and/or sewer line extensions.
Corporate Headquarters Incentive Criteria
The City will provide a one -half percent (.5 %) higher incentive to corporate headquarters if the project
meets the following criteria:
Corporate headquarters means the building or buildings that the principal executive officers have
designated as their principal office. [See North Carolina G.S. 55 -140 (17)]. The City requires that the
corporate headquarters have at least fifty (50) or more full -time employees who are located in that
building or buildings.
The headquarters and/or expansion must be located within the corporate limits of the City of Burlington.
If the project is an expansion, the expansion must employ fifty, (50) or more full -time employees.
The project must meet all other criteria as listed in Part III of this document.
Incentives will be paid after all taxes, fees and charges due the City are paid.
691Page
[1] The average hourly wage according to the Employment Security Commission includes all paid
employees of an insured industry.
[2] Alamance County generally uses I to 1 %z % as incentive amounts.
7o1Page
Appendix VIII. Selected UNC Student Intern Papers
Part A — Analysis of Orange County's Site Selection Attributes, Ashley
Yingling
701Page
UNC- CHAPEL HILL: DEPARTMENT OF CITY AND REGIONAL PLANNING
Analysis of Orange County's Site
Selection Attributes
Prepared for the Orange County Economic
Development Advisory Board
Ashley Yingling
PLAN 773: Urban and Regional Development Seminar
December 2009
Table of Contents
ExecutiveSummary ....................................................................................... ..............................1
Introduction....................................................................................................... ..............................2
SiteSelection Process ..................................................................................... ..............................2
SiteSection Criteria ......................................................................................... ..............................3
State and Regional Advantages ................................................................... ..............................3
Orange County: Advantages ......................................................................... ..............................5
Orange County: Challenges ........................................................................... ..............................6
Promising Industrial Sectors ....................................................................... ..............................7
Strategies for Business Recruitment and Retention .......................... ..............................7
Site - Specific Analysis: Buckhorn Economic Development District ...........................8
Executive Summary
The residents of Orange County have long benefitted from the presence of the University,
nearby Research Triangle Park and the access to jobs within the region. In fact, Orange
County is one of the wealthiest counties in North Carolina and has consistently boasted a
low unemployment rate. However, the majority of residents work outside the county,
though in the region. The result is that over 80% of tax revenues come from residential
property taxes, and property taxes continue to climb. In order to address this problem, the
County must be successful in recruiting, retaining, and growing businesses within the
county. This study assesses Orange County with respect to commonly used site selection
criteria and provides strategy recommendations for becoming more competitive in
attracting and retaining businesses. The main findings of this study were:
Orange County has not fared well in attracting or retaining businesses. While the
population steadily grows, jobs have not kept up. Most UNC business spin -offs leave
the county.
Orange County's location, as part of the "urban core" of the Research Triangle
Region, has led to high land prices. Other challenges include high tax rates, no local
incentives, and the County's reputation for a long regulatory process relative to
other "urban core" counties. Operations that are able to pay such high land prices
will go the other urban core counties, Durham or Wake.
C Orange County has a limited real estate product. Site listings indicate that other
counties have more buildings and development -ready land available, leaving Orange
County at a disadvantage for large projects.
• The county should market its strengths: a large, expanding research university; a
highly regarded quality of life; a highly educated workforce; an expansion of
economic development initiatives and regional resources.
The county should take action to address main challenges:
• Target sectors that are complimentary to University research and
development and tie recruitment to current projects
• Develop well- structured, targeted incentives to ease the tax burdens,
reduce the regulatory process burden and tap into local talent
• Develop real- estate product by certifying sites, developing infrastructure,
or public - private investments
• Provide capital and other incentives to retain start -up firms
Introduction
It is well known that Orange County has faced increasing property taxes due to a primarily
residential tax base, with 86x/0 of property taxes from residential property (Orange County,
2008). When companies seek to expand or relocate they search for the perfect site,
prioritizing specific criteria to minimize costs. These costs go beyond the cost of land and
development, and include the training and searching for employees, future taxes,
infrastructure upgrades, and future cost of utilities. The type of company and their needs
will determine which priorities they will prioritize. In this report, I will provide an
overview of the site selection process and the criteria commonly used to make site
decisions. I will then assess Orange County's attributes relative to nearby counties, with
whom Orange County competes for growing and relocating firms and identify the county's
main strengths and weaknesses. Finally, I will provide recommendations for improving the
county's competitiveness within the region.
Site Selection Process
While the site selection process and criteria will be different for each firm, most major
relocations and expansions follow a similar pattern. The U.S. General Services
Administration identifies the following steps in the site selection process, from the point of
view of the firm.
1. Confirm Readiness: Review feasibility prior to commencing site investigation
2. Develop the Work Plan: Create a plan to select a site (communications and
research strategies), and select the criteria that will be used.
3. Conduct Search for Sites: Collecting and analyzing data, advertising for sites, and
compiling offers.
4. Evaluate Long List: Analysis of the long list to identify the top three sites for the
project.
5. Evaluate Short List/Recommend Site(s): Detailed evaluation, negotiations and
site visits to select a final location.
Source: U.S. General Services Administration.
Other sources describe a similar process'. Assistance is readily available for firms looking
within the state of North Carolina. The Department of Commerce provides site search
assistance, analysis and guided visits to site selection teams (NC Department of Commerce,
2009b). Furthermore, their website provides county profiles, data, and a site search tool
(NC Department of Commerce, 2009). At the regional level, the Research Triangle Regional
Partnership provides a similar website as well as overall marketing for the region (RTRP,
2009). However, as noted in the Economic Development Handbook, most sites are not
selected through these websites but through close interaction with both state and county
officials.
The County can begin to influence the site selection teams' decision in step three, ensuring
that they have available sites and are able to respond effectively to advertisements for site
i See UNC School of Government's Economic Development Handbook and NC Department Commerce's "Site
Selection Process ". Details in Reference section.
proposals. Being aware of the County's strengths can lead to an effective marketing plan
and the ability to target industries that will find the County attractive.
Site Selection Criteria
According to Site Selection magazine, industry surveys revealed the following as the most
important site selection criteria (2008):
1. Ease of permitting and regulatory procedures
2. Transportation infrastructure
3. Existing workforce skills
4. State and local tax scheme
5. Utility infrastructure
6. Land /building prices and supply
7. Workers' comp rates
8. Flexibility of incentives programs
9. Higher education resources
10. Availability of incentives
While the order of this criteria changes from year to year, the criteria itself remains largely
the same. Many articles and case studies have revealed the growing importance of
workforce training relative to incentives and land prices (Morgan, 2009). Furthermore,
other case examples in Site Selection magazine point to other important factors:
• Existing clusters or related businesses
• Assistance from economic development agencies
• Research collaboration
• Quality of life
• Availability of capital for entrepreneurs
Data has been compiled to quantify these criteria for Alamance, Chatham, Durham, Orange
and Wake Counties to provide an intra- region comparison. The results can be found in the
Appendix, with the discussion below.
State and Regional Advantages
North Carolina has a long- standing reputation as a business - friendly state. For eight of the
last nine years, the state has been named the most business - friendly state by Site Selection
magazine, a reputable source of information regarding the site selection process. While the
state boasts low business tax rates, the identified advantages go well beyond tax rates
(Bruns, 2009). Many of these advantages carry over or are centered in the Research
Triangle region.
Higher Education
The higher education infrastructure in North Carolina is identified as the top reason for the
state's success in attracting firms. The University of North Carolina system provides a
highly trained workforce, a system of innovation, and research and business resources.
Another component of higher education, the community college system, is well established
as a source of specialized training. Programs like BioNetwork have been developed to meet
industry specific needs, and training is often included in incentive packages for firms
considering relocating to North Carolina (NC Commerce, 2009).
Research and Industrial Parks
Research Triangle Park initiated a hub of research and development. Several other
research parks have appeared in the state, such as Piedmont Triad Park (Starner, 2008).
The impact of these developments go beyond the firms within the park, but at least 1,500
spin -off firms have come from RTP alone (Starner, 2008). In addition to the large research
parks, there are several industrial parks across the state and 36 such parks within the
Research Triangle Regional Partnership Region (Luger, 2003). A 2003 study of the
potential for a hub -based strategy suggests that these parks have considerable amounts of
available land in the region. It should be noted that Orange County does not have such an
industrial park. While this study further suggests that there are too many industrial parks
and that counties should cooperate to plan these industrial uses better, the amount of
available land and therefore low prices can be seen as an advantage for the region.
Workforce
A lower percentage of North Carolinians, 25 %, have Bachelor's degrees, compared to the
national average of 27% (U.S. Census Bureau, 2008). Regionally, however there is a
significant advantage, with 47% of adults having a Bachelor's degree (RTRP, 2003).
Clusters
All of the regional economic development partnerships in the state have analyzed their
regional clusters and targeted their recruitment towards growing clusters that provide
good jobs. The Research Triangle Regional Partnership undertook such a study in 2003,
identifying high tech clusters within the "core metro," "non -core metro," and "non- metro"
sub - regions. The following are regionally identified clusters:
• Advanced Gaming and E- Learning
• Advanced Medical Care
• Agricultural Biotechnology
• Analytical Instrumentation
• Biological Agents /infectious Diseases
• Clean /Green Technologies
• Defense Technologies
• Informatics
• Nanoscale Technologies
• Pervasive Computing
• Pharmaceuticals
(RTRP, 2009b)
These clusters provide high paying jobs in growing sectors. The Research Triangle region
provides support to targeted clusters, through research centers, community college
programs, recruiting conferences and events, and continuing with cluster research (RTI
International, 2009).
Firm Recruitment and Retention Programs
Many of the North Carolina site selection cases involved tax and other financial incentives
(Bruns, 2009). Regionally, most counties have historically provided financial incentive to
relocating firms (Starner, 2008). However, it should be noted that the bulk of economic
development programs are not cash incentives. Statewide, the community college system
offers specialized training programs to any firm requiring an unoffered training program
(Bruns, 2009). The Job Link program provides job matching services. Furthermore,
networks of small business development centers as well as non - profit Community
Development Finance Institutions provide support for small to medium sized firms, as well
as start up businesses. Regionally, numerous small business incubators and research
centers promote entrepreneurship and small firm success. Recruitment -wise, both the
regional economic development partnerships and the NC Department of Commerce
actively provide consulting services for those seeking real estate.
Orange County: Challenges
Orange County has not been especially successful in attracting firms to the county, having
only created 12 announced jobs in 2008 (NC Commerce, 2009). While the region is
thriving, and residents can find employment in nearby counties, the lack of business
growth is straining the County's tax coffers. As of August 2009, 42% or working residents
work outside Orange County. This is a high number, compared to 27% and 18% for
Durham and Wake Counties, respectively (NC Commerce, 2009). The resulting higher tax
rates deter development, which causes tax rates to increase. Furthermore, the high tax
rates and cost of living deter many of the low skilled workers to live outside the county.
The following challenges contribute to this cycle of an increasing jobs- housing imbalance,
meaning that an increasing number of Orange County residents and workers are not able to
live near their place of work. These challenges are not insurmountable, however, as
potential strategies for overcoming them is detailed in this report..
Competition with Nearby Counties
Orange County is part of the core metro counties of the Research Triangle Region, but is
unique to the region. While the county has a major research university and is in close
proximity to the Research Triangle Park, Orange County has not seen the same job growth
or level of high tech development of Wake or Durharn County (Orange County, 2009)
Furthermore, Orange County has a lower population and much of the county is rural. Rural
land costs more to develop due to lower population densities and higher cost of
infrastructure development (Luger, 2003). Thus, while the Orange County has of the
characteristics of a metro core, they have not seen the same benefits.
This range of site characteristics can be seen in the wide range of prices of available land
listed on the Department of Commerce, with a range of $6,300 to $175,500, with lower
priced land in the more rural parts of the county. Currently, industrial land along I -40
depleting and Orange County stands to gain as demand remains fairly steady (Perry,
correspondence, September 2009). Orange County has fewer sites listed as available, and
no identified industrial parks. Orange Comity must provide the sites and buildings that are
in demand. Orange County has limited real estate product compared to nearby
counties. Furthermore, the available product does not have needed infrastructure and the
cost of development is higher.
High Cost of Living and Taxes
Orange County has significantly higher home prices, taxes, and general cost of living (see
Appendix). Not only will this result in higher property taxes for businesses, but workers
compensation requirements will be higher.
Regulatory Process
Orange County has a reputation for a long, unpredictable regulatory process. This often
discourages development by increasing entitlement risk (US General Services
Administration, 2008). While specific data on this barrier to development is not available,
multiple articles have referenced the slower process.
Orange County: Advantages
Orange County has numerous advantages that can be marketed and used to attract
desirable development.
University
The University of North Carolina at Chapel Hill is the center of Orange County. It is the
largest employer, and is a center of research and development. The University has created
a robust medical research sector. The Carolina Entrepreneurial Initiative boasts twenty
ventures started in 2008 and 27 patents issued to UNC faculty (CEI, 2009).
Workforce
Orange County boasts the highest level of working adults with a bachelor's degree, at
53.9%. While most of these workers work outside the county, the workforce can still be an
important draw to certain companies. Creating jobs within the county may, in and of itself,
draw many workers back to the county. Furthermore, job creation could lead to more
retention of UNC graduates.
In addition to Bachelor degreed workers, the Durham Technical Community College
satellite campus in Hillsborough offers training programs that can provide the skilled labor
necessary for many high tech industries.
Quality of Life
Orange County has a comparatively high tax rate. Median home prices are also significantly
higher. Yet, the majority of working residents work outside the county and chose to pay
these higher rates to live in Orange County. This statistic alone is an indication of the
quality of place and services within Orange County. Further analysis of quality of life has
been completed concurrently with this study.
Existing and Forthcoming Economic Development Projects
Multiple economic development projects are coming on line that will enhance the County's
appeal to many firms. Carolina North and the Innovation Center will create a small hub of
research and development. Similar to RTP, the Innovation Center can provide a joint
research partnerships and the potential for new business development. Other University
developments include the recent UNC Cancer Hospital, and forthcoming health center
development near Hillsborough. These development enhance the County's position as a site
for new medical innovations, research firms, and biotechnology centers.
Sectors for Recruitment and Growth
The sectors which the Economic Development Advisory Board chooses to target and assist
is a decision that requires significant research and consideration beyond the scope of this
analysis. However, this analysis can provide a basic understanding of Orange County's
economic location, or position within the global economy. The above analysis of the site
selection criteria points to the broad types of companies that are likely to locate and
succeed in Orange County. As indicated in the order of criteria importance, as well as many
case analyses, workforce training is becoming more important than the cost of space
(Bruns, 2009). Based on Orange Counties advantages— trained workforce, an expanding
research university, high quality of life —firms attracted to Orange County will likely have
the following characteristics:
1. Create high value -added products
2. Require a highly skilled workforce
3. Have ties to existing clusters and research
These characteristics lend themselves to high technology firms that will create well - paying
jobs and rely on highly and well - trained educated workers. High rents and land prices are
reflective of Orange County's physical and economic location as part of the urban core of
the Research Triangle Region. Further areas of consideration include existing regional
clusters, successful research at UNC, and the rate of national sector growth. Based on the
above criteria, regional clusters and existing industry in Orange County, the following
sectors may be of important consideration:
• Advanced Medical Technologies
• Clean /Green Technologies
• Informatics
• Biological Agents /Infectious Diseases
• Pharmaceuticals
for Recruitment and Retention
The strategies chosen to recruit and retain businesses will largely depend on the analysis of
desirable sectors and the resources available to Orange County's Economic Development
Board.
Tie Efforts to University and RTRP Activities
The 2003 study by Michael Lugar suggests that counties within RTRP have been competing
against each other rather than coordinating efforts. The result has been deflated land
values due to excessive industrial sites, and few concentrated hubs of activity outside the
Research Triangle Park. Recent efforts suggest that Orange County has the potential to
become such a hub, as the County and University collaborate on the development of
Carolina North. The targeting efforts should come through careful analysis, much like that
done for the solar cluster, and include an assessment of University resources and regional
efforts. Rather than replicate or try to compete for hubs in nearby counties, Orange County
should seek to build off their existing strengths and coordinate with these counties. It is
essential that concentrated efforts be coordinated to conserve economic development
resources.
The development of Carolina North or the potential development of the Economic
Development Districts presents the opportunity to change the direction of Orange County's
economic development. Rather than getting the occasional spin -off from RTP, mixed with a
range of local businesses, Orange County can develop a true "hub" as part of a larger cluster
within the Triangle. Capitalizing on University resources can truly tie the developments to
the research happening in RTP. The identification and organization of such hubs is beyond
the scope of this report, but the numerous cluster analyses can provide a starting point for
identifying promising sectors and determining means of supporting these specific sectors.
Create a Support System for Start -up Firms
While UNC faculty and students start up dozens of ventures annually, few stay in Orange
County (see PLAN 773 report, Ben Houck). While it is clear that the University provides
support for these ventures through capital investments and significant technical assistance,
these investments are not tied to the future of Orange County. Many of these ventures have
become high growth companies that have gone on to hire many employees (CE], 2009).
The county should capitalize on this entrepreneurial hub and provide additional support to
those who remain in Orange County. There are numerous possibilities for endeavoring on
this effort, including venture capital funding and incubation programs. There is potential
for great synergy with the University in this arena. With the Launching the Venture
business plan contest, University experts pick the highest potential firms (CEI, 2009).
Providing incentives or matching funds could encourage these promising firms to stay in
Orange County.
Invest in Real Estate Product
A lack of real estate product is Orange County's foremost hurdle in attracting large,
relocating firms. Without ready -to- develop sites, the County will rarely make any site
selection committees short list. Therefore, real estate investment must become an
important priority for the County. Infrastructure development, as detailed in the Buckhorn
case below, is of paramount importance. Orange County has no industrial parks or certified
sites. Creating a certified site can set the sites apart from similarly priced sites, indicating
that the much of the site preparation and evaluation has already been completed. Public -
private partnerships, speculative real estate projects and shell buildings also provide real
estate product that can compete with the rest of the Triangle. Further means of
encouraging speculative real estate development are detailed in the Buckhorn case
analysis, below.
Consider Well- Structured Incentives
Despite many economic developers' distaste for incentives, they still remain important to
site selection decisions (Bruns, 2009). The state of North Carolina provides incentives, and
over half of all counties in the U.S, also provide incentives (Bruns, 2009). Not all incentives
are cash incentives, as they can include workforce training, infrastructure development or
provision of amenities. Creating well structured incentives can minimize the County's risk
and provide needed advantages. Possible incentive features may include:
• Claw -back provisions: provisions that require firms to repay incentives
should job creation goals not be met
• First - source hiring: provisions that require firms to hire qualified Orange
County residents first
Furthermore, incentives should be highly targeted and carefully considered on a case -by-
case basis. An thorough analysis of the fiscal impact and economic benefits can provide a
clearer picture of how much incentive should be provided. The analysis should further
include the firms potential for success and for becoming embedded in the Orange County
economy. Considerations included: Is the sector a growing sector? Will the firm provide
appropriate jobs for Orange County residents? Will the firm be connected to existing
markets or supply chains? Does the firm have potential to attract similar firms?
Site Analysis: Buckhorn Economic Development District
The Economic Development Districts have been identified top priority for development
(Orange County, 2008). The Buckhorn site has gotten much attention as of late due to the
recent Buckhorn Village Proposal (Summit Consulting, 2008). The planned development
included residential, hotel, services and retail development. The Planning Commission,
however, denied the developers re- zoning request largely due to the undesired use. The
Economic Development District Design Manual calls for manufacturing and light industrial
development. This Board of County Commissioners, however, chose to approve the
rezoning application. However, due to the economic downturn, development has been
halted and the developer does not plan to go forward with Buckhorn Village. This brief
analysis identifies the reasons the development did not go forward, as well as strategies to
promote desired development on the site.
Site Characteristics
The Buckhorn Economic Development District is a 63 acre site at the intersection of I -40/1-
85 and Highway 70, providing transportation access as well as well as passing traffic. The
original plan of mixed used development will take advantage of both passing traffic and
highway access for residents commuting to work. The site is not served by water or sewer
and is zoned Economic Development District, which allows for a variety of uses. The small
area plan calls for light industrial or manufacturing at the Buckhorn site. Correspondence
10
between the County Commissioners and the developers indicate that the developers are
considering an industrial use of the site.
Barriers to Development
Though mixed use development plans have been approved for the site, development will is
not currently going forward. Based on correspondence between the developer and the
County Commissioners, the following barriers prevent development at this time.
Poor economic conditions. The economy has created a declining retail market, and
few anchor -type tenants are opening new stores. The large retail development was
dependent on having certain anchor tenants in place, and the market now makes
this type of development infeasible. The developers are now considering an
alternative of industrial and flex space development.
Acquisition cost The acquisition cost of $86,000 was cited as probative and not in
line with similar sites in Burlington and Butner, which are on the market for
$47,000 - $50,000. These sites include infrastructure.
Inadequate infrastructure. The lot considered for development doe snto have access
to water or sewer infrastructure. The expense to the developer to build this
infrastructure is considered prohibitive.
Strategies for Encouraging Development
In encouraging real estate development, there are three main strategies available: reduce
costs, increase revenues and reduce risk. Outlined below are some potential strategies for
the Buckhorn site.
Reduce costs. Orange County can negotiate with the current owners to get a
more reasonable price based on comparable properties. Based on the NC Site
Selector tool, the Buckhorn site has come down in cost quite significantly. Other
potential means of reducing costs include providing infrastructure and providing
incentives or tax abatements. Financing infrastructure could potentially be done
through Tax Increment Financing, detailed in another report. Providing or
guaranteeing loans could also reduce the cost of capital, malting the project more
feasible.
Increase Revenues. The main means of increasing revenue would be to allow
increased density. A closer analysis of the site zoning could determine if this
approach would increase project feasibility.
Reduce Risk. Providing more detailed market information, site analysis or
environmental assessments can reduce the risk for prospective developers.
Orange County may consider North Carolina's certified site program, which
could certify the site as development ready. This could further reduce risk by
reducing the entitlement timeline.
11
Works Cited
Carolina Entrepreneurial Initiative. (2009). CHI Highlights. Retrieved from:
http : / /www.kenamnstitute.unc edu /centers /cei/?y= about &t =About
Morgan, Jonathan. (2009). Economic Development Handbook. Retrieved from the UNC School of
Government website: htto: / /www sog unc edu / pubs/ electronicversiQns /h /econdevhbkO912df
North Carolina Department of Commerce. (2009a). "Steps in the Site Selection Process." Retrieved
from the North Carolina Department of Commerce website:
Jtttn•/ /www nccommerce com/ en/ BusinessServices/ InternationalBusiness /SiteSelectionSteps htm
North Carolina Department of Commerce. (2009b). "Site Selection Toolkit" Retrieved from the
North Carolina Department of Commerce website:
littp•/ /www nccommerce. com /en /BusinessServices /LocateYoui-Business /SiteSelectorsToolkit/
North Carolina Department of Commerce. (2009c). "Economic Development Intelligence System."
Retrieved from the North Carolina Department of Commerce website:
tt s• / /edis commerce state ne us /Portal /main do
Orange County. (2008). "2030 Comprehensive Plan." Retrieved from:
httl2://www.co.oi-ailge.nc.us/plaiininglcQnil2re c�pu date.asp
Research Triangle International. (2009). State of the Triange Region. Retrieved from:
http://www.co.orange.nc.uslecodev/documents/2009SQRReport.pdf
Research Triangle Regional Partnership. (2009b). "Clusters." Retrieved from:
hU: // www. researchtriangle .org /pages.12hl2?12age1= 31 &paa_e id =31
Research Triangle Regional Partnership. (2009). "NC SiteSearch." Retrieved from Research Triangle
Regional Partnership website: http: //www.ncsitesearch.coiii/default.asv?P=104
Schultz, Mark. (2008, October). 'Incentives floated as business lore." The Chapel Hill News.
Retrieved from: http://www.chal2elhillnews.com/news/story/19419.htmi
Summit Consulting. (2008). "Buckhorn Village: Economic Development Planned Development"
Retrieved from:
httn• / /www co ora ge nc us/ planning /PDFs/ Currentl nterestltems /Buckhorn %20Village %20Plan
ned %20Develol2ment /Buckhorn Village Most Current MASTER PDF 041008.1)df
Starner, Robert. (2008, November). 'Investment Profile: North Carolina Biotech." Site Selection,
Retrieved from: httl2://www.siteselection.com/features/2008/nov/NC-Biotech
U.S. General Services Administration. (2009). "Site Selection Process Overview." Retrieved from
the U.S. General Services Administration website: littu: / /wwwgsa.gov
12
APPENDIX: County Comparison
County
.Orange
Durham
Wake
Alamance
Chatham
> PropertyTaxper
$0.85_
8
84 =
11.8,
-
_$100 Value--
. 0
_, 0
0
0 -'
Sales Tax Rate
7.75%
7.75%
7.75%
7.75%
7.75%
Umversitles
$6,300 -
$42,300-
$30,000-
$21,369-
$3,500 -
Universities, Metro
9
9
9�
14
9
Area
T9[divayincu6ator
Several
Entrepreneurship
GommunityGolleges
0
3
1
1
0=
Community Colleges,
11
11
14
13
13
30 mi.
Start Ups
331
MotAval-
2702:
34888'
Announced Jobs,
0
441
483
111
104
2008
Lost Jobs, 2008
83 i=
-1588 `,
2,608:
:- 17
111611 -
Percent with
53.90%
42.60%
45.90%
20.70%
29.70%
Bachelor's Degree
Percent Youngand
6.00%
7.00%
2.00% `
Not Reported
Educated"
County Tier
3
3
3
2
3
Average Hone Price,
- " $220,300
$171,100
$203,500
$131,200
'- Not Reported
2006
-
-.
Buildings Available,
3
35
20
70
10
Sites Available,
12
22
9
52
7
Listings
6,2
8
84 =
11.8,
7:5
Certified Sites_
. 0
_, 0
0
0 -'
Available
Health, education
Health,
Retail,
_
Wholesale trade,
Per Acre Cost of
$6,300 -
$42,300-
$30,000-
$21,369-
$3,500 -
Available Sites,
$175,500
$225,244
$436,932
$255,000
23,715
Median Income
$55,522
$51,292
$65,487
$43,769
$57,677
UnemPtoyMent,Oct.
6,2
8
84 =
11.8,
7:5
2009
Industry
Health, education
Health,
Retail,
Manufacturing
Wholesale trade,
Specializations
education
Administrative,
health care
Health care
Entreprenebr- -ship
T9[divayincu6ator
Several
Entrepreneurship
Programs
Incubators
fund
Incentives Used?
No local incentives
Yes
Yes
Yes
Yes
Part B — From Economic Base to Economic "Basin ": Keeping UNC Ideas
Here and Case Study, Ben Houck
851Page
From Economic Base to Economic "Basin ": Keeping UNC
Ideas Here
Executive Summary
Technology commercialization at UNC has reached unprecedented levels of impact and
administrative recognition. Multi - disciplinary and award - winning entrepreneurial programs at
Kenan- Flagler Business School launch dozens of companies each year. Several companies now
operate in Chapel Hill, Hillsborough, or Carrboro. However, the majority locate elsewhere. In order
to better capture the benefit of the University's "spinoff' activities, representatives and personnel
of Orange County should:
e Know the people who know the people: Form relationships with faculty and office directors who
constantly consult enterprising researchers and students.
• Distinguish Orange County from the local competition: Identify and promote the reasons why UNC
researchers or graduating entrepreneurs would benefit from locating in Orange County rather than
traditionally- favored proximate locations.
• Understand the needs of eartratage companies and rill service gaps: Early -stage companies look for
those who provide for their early -stage needs.
Research Question
Research Task #3 requests 'documentation and analysis of best practices associated with incentives and
tools being used to retain and attract businesses' (abbreviated to show emphasis of research). This task
correlates strongly with Objective ED -2.12 of the Comprehensive Plan which intends to 'identify space
needed for businesses created through university research'. The combination of these two themes led me
to investigate technology commercialization and entrepreneurship programs at UNC. The final
recommendation explains Orange County's potential for harnessing this activity.
Overview of Research Activity at UNC
The University of North Carolina at Chapel Hill is a premier research campus. In FY2007, UNC ranked
10`" in federally - financed research expenditures at public universities and colleges (National Science
Foundation / Division of Science Resources Statistics, 2009). That ranks ahead of the 5 branch
8 6 1 P a g e
campuses of The Ohio State University, combined, and ahead of the University of Texas - Austin, which
has nearly twice the student population.
The Office of Sponsored Research is the major administrator of externally- funded research. In FY2009,
research grants and contracts totaled $716 million, an increase of 5.6% from the previous year and its
largest sum to date. Contracts and grants came primarily from federal sponsors, especially the National
Institutes of Health and National Science Foundation. The School of Medicine attracted the largest
proportion (48.8 %) of this total. Other departments receiving funding awards include the School of Public
Health ($103 million), College of Arts and Sciences ($110 million), and School of Pharmacy ($16 million).
However, the approach to research within the greater UNC system is changing. In the summer of 2009,
UNC system faculty and researchers partnered with IBM and other private industry leaders in evaluating
a strategy going - forward for technology commercialization within the entire UNC system. Beginning in
September, campus -based teams began an evaluation that will culminate in a final report in September,
2010. They are each completing their evaluation using six recommendations established this summer.
These 6 recommendations are listed in Table 1.
• Identify unique strengths at each UNC institution
• Seek to combine the strengths of each institution within an overall system strategy
• Form comprehensive mentoring strategies within and among campuses
• Enhance the incentive programs for faculty, staff, and students
• Pilot new relationship -based staffing models
• Create commercialization legal guidance forms
Along with these recommendations, two broader concerns were identified. One is a need to redefine the
concept of technology transfer and normalize its definition across each campus. The second is a need to
reorient the offices which manage the commercialization process from a transaction -based approach to a
relationship -based approach. The new strategy will enhance the University's relationships with private
industry and public agencies and will impact who funds research activities at UNC - Chapel Hill and what
industries will have interest in locating or collaborating in Orange County.
Research Centers and Institutes
Research centers and institutes are conducting over 80 research and service projects in Orange County
and over 3,000 throughout North Carolina. These units provide 772 jobs in Orange County and nearly
1,500 across the state. The units attracted more than $123 million in external funding in 2008 which
accounted for 87 %'of the total budget among all centers and institutes. Sixteen research units report to
the Office of the Vice Chancellor for Research and Economic Development. This office plays an important
role in the University's relationships with foundations, federal agencies, corporations, and state and
federal governments.
Technology Commercialization at UNC - Chapel Hill
The liaison between the many researchers and inventors in campus laboratories and private industry is
the Office of Technology Development (OTD). The principal services provided by OTD include:
• Evaluating an innovation for its commercial potential by leveraging its business
expertise and industry contacts
• Obtaining appropriate protection for the intellectual property represented by an
innovation
• Identifying strong prospects for commercial partnership
871 Page
a Negotiating an appropriate licensing agreement
OTD works with an inventor in choosing from one of 3 strategies: licensing to an established company,
formation of a UNC spinout company, or, if the innovation needs more time to develop, solicitation of
sponsored research from industry with an option for the partner company to eventually license the
innovation. The strategy chosen is based on several criteria, including the breadth of the intellectual
property, stage of development, and current investment climate.
OTD has enjoyed notable success. UNC currently holds 454 patents and 10 trademarks. In FY2009, 137
inventions were disclosed, 20 patents were issued, and revenue achieved through licensing agreements
amounted to $3 million (Development, 2008). OTD launches 5 -10 companies each year . Companies
launched through OTD in recent years include those listed in Table 2.
Table 2: A selection of companies started from research at UNC
Company
Year Founded
Originating Department
Company Location
AI havax
1997
Microbiology
RTP (2 locations)
Qual st
2001
Pharmacy
Ralei h
InnerO tic
2002
Computer Science
Hillsborough
Alg nomics
2005
Dentistry
Chapel Hill
Invitrox
2005
Medicine
RTP
The Director of OTD comments that many of UNC's emerging technologies tend to be therapeutic in
nature, resulting in a lengthened time -to- market because of clinical trials and FDA approvals.
Entrepreneurship Programs at the Kenan- Flagler School of Business
UNC - Chapel Hill was named the most entrepreneurial campus by Forbes Magazine in 2004. That year,
the University was one of eight pilot programs to receive 5 -year, multi - million dollar grants from The
Ewing Marion Kauffman Foundation to initiate campus -wide programs in entrepreneurship. This marked
the beginning of the Carolina Entrepreneurial Initiative. Programs within this umbrella initiative include the
following.
Launching the Venture
This program has launched more than 100 commercial and nonprofit ventures since its inception. The
series is made up of 4 half- semester classes lasting one academic year. Teams are comprised of a mix of
students, faculty, and staff.
SoftLaunch
This is a 6-week course fashioned similarly to Launching the Venture but offered to students in the
Executive MBA program. Twenty -one ventures were developed by teams enrolled in the 2009 SoftLaunch
program, including those listed in Table 3. A 2003 spinoff from the program is SpectraForce Technologies
Inc. with headquarters in Raleigh. In 2008, it was 17" on Triangle Business Journal's Fast50 list of the
fastest - growing private companies in the Triangle Region (Triangle Business Journal, 2008).
Table 3: Selection of companies from SoftLaunch 2009
Company
Industry
Arbitrage Cycles
Custom Bicycle Maker
Authentica Tourism Services
Tailored Travel Services
Bab cakes
Bakery
33 Personal Interview with Cathy Innes, Director of the Office of Technology Development. November 10, 2009
881Page
MedElements
Medical Billing
EnergetixClimate
Green Consulting
Carolina Launch Pad
The Launch Pad is a pre - commercial business accelerator for early -stage information technology
startups. It is located on the 5'h floor of the Europa Center. Participating businesses benefit from web
hosting services provided by Renaissance Computing Institute, networking with staff of the School of
Business and Office of Technology Development, and the use of office equipment. Its first class in 2008-
2009 consisted of 5 companies, which was a number determined by the space limitations of the facility.
Small Business Technology Development Center at UNC - Chapel Hill
The Small Business Technology Development Center (SBTDC) is the business and technology extension
service of the UNC system and operates in partnership with the US Small Business Administration. The
core services of SBTDC are extensive management counseling and market development for small to mid-
sized companies. The office in Chapel Hill has 3 counselors. The SBTDC is also the Governors Small
Business Innovation Research (SBIR) assistance resource. SBIR is a competitive funding program which
annually designates approximately $2.5 billion in federal funding for small businesses engaged in
research and development activities. 53 of the 106 SBIR award winners in 2005 were clients of SBTDC.
The Innovation Center at Carolina North
The location historically most favored by companies spun -off from UNC has been Research Triangle Park
(RTP). With 136 R &D facilities and more than 37,000 employees, RTP has indeed been a vital asset to
the greater regional economy. However, as much of RTP lies in adjacent Durham County, it has poached
the potential for commercial development within the borders of Orange County.
However, a shift in momentum is stirring which will reclaim the fruits of commercial activity from UNC and
constituent programs. The Innovation Center at Carolina North is expected to be completed in 2013 and
is envisioned to be a "best-in-class" model of business accelerator facilities. Tenants within the 3 -story,
80,000 SF building on 8 acres will include UNC offices, commercialized companies, and tenants chosen
by the property manager. Indeed, the Innovation Center will absorb a significant number of
commercializing businesses.
How will the County benefit? The Center will
be funded, built and operated by a private
developer, and the Special Use Permit
stipulates that as long as the building is
privately- owned, it will be subject to ad
valorem taxation.
Recommendations:
A few recommendations can be offered which will help Orange County to capitalize upon technology
commercialization and entrepreneurial activity at UNC - Chapel Hill. These recommendations are:
891 Page
Know the People. who will know the Deoole
Each entrepreneurship program at Kenan- Flagler Business School is spearheaded by one or several
faculty advisors. Each year, these programs cycle through such enterprising people with momentous
ideas, each one unique and unlike others. This uniqueness signifies that no two commercialized
companies will demand the same set of needs in financing, real estate, or personnel. With this in mind,
the action that will undoubtedly and positively impact county government is to "know the people who will
know the people ". Form relationships with advisors, directors, and consultants who frequently interact
with those who will one day found companies, rent office and flex space, and employ personnel.
Differentiate Orange County from the local competition
RTP is the traditional favorite location among companies spun out of UNC- Chapel Hill's campus.
While RTP has long been and continues to be an asset to Orange County, it is simultaneously a
competitive threat for commercial location. The task for Orange County, then, is to differentiate itself from
RTP, acknowledging its competitive advantages and highlighting its benefits. As emphasized by the
Director of the Office of Technology Development, commercializing companies want to locate close to
campus37. For faculty who continue teaching on campus while managing or consulting new ventures, it is
simply a time saver. If new companies were moving entirely from the Triangle region elsewhere, the task
for Orange County would be the opposite. It would then be better to immerse itself within the regional
brand. However, the action recommended here is to identify and promote ways that companies can
benefit by locating in Orange County.
Understand the needs of early -stage companies and fill service gaps
Commercialized companies are early -stage companies with early -stage needs. Despite their unique
qualities, early -stage companies have needs that are quite common. The further along a firm is, the more
specialized its needs become. Many of the offices and consulting centers identified above offer the
services these companies need. This includes networking, business plan enhancement, and legal advice.
Other needs for early -stage firms include finding sources of "patient" financing and loan default
guarantees.
Given the importance placed upon responsible land use, Orange County will better accommodate early -
stage firms with somewhat predictable office needs. Orange County should take the lead in filling any
gaps in service to these companies.
37 Personal Interview with Cathy Innes, Director of the Office of Technology Development. November 10, 2009
goIPage
Reference Page
Development, O. o. (2008, December 31). Highlights: Statistics. Retrieved December 12, 2009,
from Office of Technology Development: http: // research. unc .edu /otd /highlights_stats.php
National Science Foundation / Division of Science Resources Statistics. (2009, November 30).
Rankings: Highlights. Retrieved December 12, 2009, from The Office of Sponsored Research:
http: // research .unc.edu /resfacts /rankings.php
Triangle Business Journal. (2008, November 7). MeclPro RX claims No. 1 spot in the Triangle
Business Journal's Fast SO Awards. Triangle Business Journal, p. 4.
9iIPage
From Economic Base to Economic "Basin ": Keeping UNC
Ideas Here
A Case Study of the Economic Incentive Process of Austin, TX
The following research is a best - practice case study of the economic development process employed by
the City of Austin, Texas. 'Documentation of best practices' was requested in Research Task #3 and case
study research was promised in the original scope of work. I preface this writing only to explain that this is
neither a strict comparison of the technology commercialization process at the University of Texas - Austin
nor an explanation of Austin's efforts to retain entrepreneurial activities from the university. Instead, this
case study outlines the economic incentive process employed in Austin, a home of state government, a
major university, and established industries but also a city which faces environmental and social equity
tensions. At the end of this document you will find an Author's Note which explains more of the
background of this case study.
The Commissioners of Orange County can benefit from understanding how the process has evolved in
recent years to address issues of social equity and public disclosure. Final recommendations will be
made to add to an understanding of how government can proactively address companies with interest in
locating in Orange County.
Executive Summary
Austin, a city which claims to be more selective than peer cities when offering economic
incentives, has 7 active economic development agreements. Since 2003, the City has used a
structured process in evaluating the potential for incentives. A reduction in property taxes or
other accrued liabilities has been the normal means for these incentives. In return, the city has
made minimum requirements regarding site location, water regulation compliance, capital
investment, and job creation. Moreover, the process has, in recent years, added steps to the
process of evaluation and compliance review which address social equity and public disclosure.
A descriptive account of Austin's most recent economic development agreement with a solar
technology company, HelioVolt, is included to enrich the understanding of these mutually -
benefiting contracts. Final recommendations for Orange County include:
• Provide alternative means to reach mutually- benefiting goals
• Make "place" matter by grounding a company in Orange County
• Set the expectation of prospective companies through a structured process
Figure 1: Austin's Economic Development Incentive Process
921 Page
Figure 1 shows the major steps to Austin's incentive process, beginning in the top left with a prospective
development, and ending in the bottom right with the vote by City Council. The Economic Growth and
Redevelopment Services Office implements the City of Austin Economic Development Policy as directed
by the Austin City Council. The Office manages the City's 6 firm -based and 1 project -based active
economic development agreements. Austin claims to be quite selective with their incentives and reserves
them for companies with a potentially large impact on the local economy.
After an initial evaluation of the company, the prospect completes a business information form and
minority participation plan. Austin adopted this addition to its incentive policy in 2005 regarding minority
participation. Any company receiving incentives is offered three options for complying with the policy: they
can incorporate the City's MBEAVBE goals based on its ordinance; they can provide historical data
demonstrating success in achieving diversity in contracting and hiring of minorities; or it can provide a
plan for establishing goals for diversity.
The City then performs a review to ensure that the prospect meets two minimum requirements. The firm
must locate in the Desired Development Zone and the firm must comply with water quality regulations on
all current projects and during the term of the incentive agreement.
931 Page
Figure 2: Economic Development Matrix
Article I. 0c-erall Economic and Fiscal Impact
Grant
Date
(jobs and income, net fiscal impact, desirable public
25% of Property Tax (20 years)
benefits, in growing target industry, firm
May 15, 2003
80% of Sales Tax (Years 1 -5)
headgnartars operation, large employer -500 or more).
50% of Sales Tax (Years 6 -15)
Firm -Based
Small
hiadium
I.aree
Points -
10
20
30 -.
Linkage; to the Local Economy
(uudennitized segments of
workfoma or space, contracting
opportunities nith. local firms, add to
local eesaGmic bmz, compete
with emsfing local firms)
Poor
Acceptable
strop
Points
0
is
19
Ch3reCter ofTob.lLabor Practices
(hiring fi'om local laborkice versus in- nngrams,
average andmedim wage, wage snuchue
commitment to worker training, diversity in hiring
and promotion)
Poor
Acceptable
Excellent
Points "
0
le
25
Infiashnchuz Impact
(disproportionate demand on
community utfi'ashucture - water,
utilities, trarmpmtition)
Low
Disproponionate
Proportionate
Impact
Points "
0:
5
10
Quality ofLifr!Cultmal Vitality (film has ctilhu -d
outreach and employee philanthropy program)
Unacceptable
Acceptable
Excellent.
Paints - -: '.
`0'
10
Austin Green Building
Program (2 -star green building orLEED certified
rating)
No
Yes
Boum Points
0
10 `.
110
Total Possible Points
Should the company
meet both minimum
requirements, the
company is then
evaluated by a scoring
matrix, shown in Figure
2. The matrix has 6
major categories, each
with point totals and 3
within-category
rankings for a total
possible 110 points.
The categories are
Overall Economic and
Fiscal Impact, Linkages
to the Local Economy,
Character of Jobs and
Labor Practices,
Infrastructure Impact,
Quality of Life and
Cultural Vitality, and
participation in the
Austin Green Building
Program.
Firms with a score
between 81 and 100
may qualify for up to
50% of the net present
value of the estimated
total tax liability over 10
years. Firms with 61-80
points may qualify for
30 %, and a score
below 60 disqualifies
the firm. As a rule, total
incentives will neither exceed 50% of this net present value nor 80% of the total tax liability in any single
year. Each category contains quantitative and qualitative sub - measurements to determine point total.
There is one category called "Extraordinary Economic Impact' which is not shown here. The Council
reserves the right for additional consideration for companies that meet 1 of 4 special criteria: production of
an emerging technology, creation of more than 500 jobs, the potential for State funding, or involvement in
a targeted industry.
After this step is completed, the agreement moves into the political process, from Economic Development
Committee to City Manager, drafting by the legal department, and ending with a vote by City Council.
Table 1: A Review of Austin's Active Development Agreements
Project / Company City Council Approval
Grant
Date
Project -Based
25% of Property Tax (20 years)
Domain
May 15, 2003
80% of Sales Tax (Years 1 -5)
50% of Sales Tax (Years 6 -15)
Firm -Based
941 Page
Home Depot Data Center
June 24 2004
100% of Property Tax (10 years)
Alternative Technology
September 2, 2004
100% of Property Tax (10
Development Center
ears
100% of Property Tax (Years
Samsung 300 mm
August 18, 2005
1 -10)
Fabrication Plant
75% of Property Tax (Years
11 -20
Hewlett- Packard Data
March 2 2006
40% of Property Tax (Years 1-
Center
,
10
$40,000 for 1" and 2nd Year
All other years 50% of the sum
Friday Night Lights
March 22, 2007
of a) Sales taxes Paid b) City
Fees Paid and c) $95 per
employee
HelioVolt
November 1, 2007
60% of Property Tax (Years 1-
10
Table 1 displays the list of incentives made to companies since 2003. Each company pays their total tax
liability in any given year. It then must submit a request for reimbursement at the agreed -upon
percentage. The City checks if the company is in compliance with the agreement. The City then
reimburses the company in the following year.
After the approval of an agreement, an essential step is ensuring that each company holds up its end of
the bargain. To that end, the City employs a structured compliance review for each company. City officials
review property tax records, payroll reports, financial statements, sales tax returns, invoices, and other
records specific to performance requirements. Moreover, in 2007 the City established a requirement that
each compliance review be verified by an independent party and for that independent review to be made
available to the public.
For much of the past decade, Austin has targeted incentives to both large -scale land developments
(Domain) and firm -based developments. However, Austin now solely uses a firm -based economic
development program. It eliminated incentives for private large scale mixed -use developments by
resolution in December, 2007. These incentives were eliminated due to a perceived lack of public
participation and questionable practices of estimating costs and benefits of targeted projects. The
commentary of economist Michael Oden, a professor in the Community and Regional Planning
Department at the University of Texas at Austin, provides insight as to why project -based incentives were
eliminated.
"To understand the problems inherent in retail incentives, it is important to recognize
that retail activity is generally the result, and not the cause, of economic growth in a city
or region. Retail activity cannot grow faster than disposable income within a given
economy. To the extent that new or expanding retail establishments grow faster than
local purchasing power, there will likely be a crowding out of existing retail
establishments. In most cases, retail incentives simply shift economic activity from one
place to another, rather than generating new products or jobs. This is why it makes little
sense to offer public incentives to retail except in special cases such as trying to bring
basic retail services to underserved neighborhoods. At one time, these incentives may
have been justifiable to introduce the mixed -use concept to the Austin market."
A review of the Agreement between HelioVolt and the City of Austin
95IPage
Up to this point the discussion has revolved around the process employed by Austin and the incentives
offered. What has not been discussed is what the City has required of these companies in return. The
discussion below describes such requirements using the example of the most recent Economic
Development Agreement reached between the City and HelioVolt.
HelioVolt is a manufacturer of glass
laminate modules for use in commercial,
residential, solar farm, and custom
applications. It uses proprietary thin -film
solar technology and intends to provide a
more cost - competitive product than
competitors. The proprietary technology
was invented by the company's founder and
first CEO.
In November of 2007, HelioVolt and the City of Austin entered into an Economic Development
Agreement. The Agreement includes the following provisions:
• HelioVolt will create at least 168 full -time jobs and invest at least $80 million within 5
years in real property, equipment and machinery.
• If the number of jobs falls below 168 (voluntarily or involuntarily), HelioVolt has 3
months to reestablish that number of jobs or the agreement is terminated.
• HelioVolt will utilize local non - profits in hiring and recruitment efforts, including:
• National Society of Black Engineers
• Society of Hispanic Professional Engineers
• Career Expo for People with Disabilities
• Out and Equal Summit (LGBT)
• HelioVolt agrees not to employ undocumented workers and must repay all grants with
5% interest if found in violation.
• HelioVolt will use "reasonable best efforts" to include HUBS (Historically Under-
represented business) in its supply chain.
• The City will reimburse 60% of property taxes paid on all acquired personal property,
real improvements, and on the increase in taxable value beyond the existing base value
of $390,000.
• Payments shall be made from budget appropriations each October for taxes paid the
previous calendar year.
• Each party has 90 days to cure any default.
r., w1 o. o --- CI- *_ l`Of _f Actin #!m faA rni Grnnnmir flavalnnmant r:nmmiffaa
40% of New Property Taxes for 10 year term
1$404,678
Sales Tax from New Employee Spending
1 $536,010
961Page
General Fund Transfers from new electric
sales
$1,120,068
Total Net Present Value
1 $2,060,756
The first grant is expected to be made in October, 2010. Grants are expected to total $607,017 over the
10 -year term of the agreement. The first compliance reports are due in March, 2010.
Nearly one year after the agreement was reached, HelioVolt built its first factory for manufacturing high -
performance thin film solar energy products. The 122,400 SF LEED - Certified facility is located in the Expo
Business Park in southeast Austin and opened in October of 2008. The company expected to add 150
jobs with the construction of the plant. Although the company originally expected to begin operating in
2008, it has encountered delays, and now expects for its products to become available in 2010.
Since the signing of the agreement, the City has extended further mutually- benefiting incentives. On
September 24, 2009, City Council approved, with a 7 -0 vote, a rebate not to exceed $62,125 to HelioVolt
for the installation of energy efficient equipment. With funding available from the Operating Budget of
Austin Energy, there was no anticipated fiscal impact. The motion was recommended by Austin's
Environmental Board and Resource Management Commission.
More commentary from Professor Oden describes the distinguishing nature of the agreement with
HelioVolt.
"With the HelioVolt deal, the city decided to put aside the former requirement that
incentives can only be offered to large establishments of over 500 employees. Given
changes in the economy, this new targeting of small to medium -sized companies is a
smart policy."
Recommendations
Orange County Commissioners and staff can benefit from understanding the incentive process utilized by
the City of Austin. A few recommendations can be gleaned from the process itself but also from Austin's
hard lessons learned in recent years.
The City of Austin encouraged the inclusion of minorities in hiring and recruitment practices, either
through direct employment or the utilization of minority -owned businesses in supply chains or contractual
arrangements. To accomplish this goal, the City did not decree only one means to an end. Instead,
companies are allowed to select from one of three alternatives. Allowing firms to choose from several
alternatives introduces flexibility into an otherwise rigid evaluation process.
.. . Loa ... im
There are ways to ground a company that go beyond the mere location and production within Orange
County. If you have a client company and link it carefully to workforce development providers — the
Regional Partnership Workforce Development Board, for example— this can help meet public goals of low
unemployment and a higher - skilled workforce with the needs of the client. And, if companies simply can't
move closer to UNC, there are offices, such as the Office of Economic and Business Development that
proactively takes the campus to them. These are two examples by which a new company can become
enmeshed in the life of Orange County beyond its normal operations.
971Page
Prospective companies need to know what to expect between the time of searching for a site and the
start of operations. This can be accomplished by establishing a clear process for company evaluation and
compliance review. Moreover, standard formulas for determining incentives, such as the net present
value formula used by Austin, achieve a means for determining the inducements that Orange County can
offer to prospective companies.
Author's Note:
Over the course of the semester 1 have heard qualitative comparisons between the Triangle region and
Austin. As I had the chance to travel to Austin in October for personal reasons, I took the opportunity to
reserve interviews with personnel from the Greater Austin Chamber of Commerce, visit the campus of UT
Austin, and visit the Austin Technology Incubator.
However, the research is tailored a bit to match the requests of the Advisory Board. It is my
understanding that during the County Commissioner's November retreat, a request was made to
investigate the "incentive" process used by Austin. This introduces the point of departure in that this
documentation of a case study is not a discussion of the commercialization process of UT Austin and the
City's subsequent retention practices. Indeed, Austin has made a significant effort in retaining companies
spun-off from the university. Instead, the narrative below investigates Austin's response to later -stage
firms.
I also understand arguments for not comparing these two regions. For example, the Triangle is known as
a hub for biotechnology while Austin is known for software and information technology. However, Austin
has made a concerted effort in recent years to attract biotechnology firms, although their "major missing
ingredient" is a medical campus such as the campus at UNC- Chapel Hill. Also, Austin does not have an
adjacent entity which attracts businesses away from the city, such as what Raleigh and RTP are to
Orange County. Austin is the home of state government, a university campus, and established industries.
It is the central hub of a 5-county regional partnership. And finally, the powers given to a city government
in Texas may not be similar to the powers given to a county government in North Carolina.
These shortcomings aside, the research intends to present the structured incentive process employed in
Austin. The Commissioners of Orange County can benefit from understanding how the process has
evolved in recent years to address issues of social equity and public disclosure. Final recommendations
will be made to add to an understanding of how government can proactively address companies with
interest in locating in Orange County.
981Page
Part C— Tax Increment Financing and other Development Financing
Tools to grow the tax base of Orange County, North Carolina, Michael
Levengood
991Page
Levengood 1
Tax Increment Financing and other Development Financing Tools to grow the
tax base of Orange County, North Carolina
Michael Levengood
12/14/09
Prepared for the Orange County Economic Development Advisory Board
and
PLAN 773
Levengood 2
1. Introduction:
In 2004, North Carolina voters approved an amendment to their state constitution
enabling the creation of tax increment financing (TIF) districts. Though new to North
Carolina —the state was the forty-ninth to allow TIFs— across the country, tax
increment financing is currently one of the most popular strategies in local
government's economic development "toolkit" (Blocher 2).
Originally intended for the redevelopment of blighted areas, TIFs have increasingly
been used to spur development on greenfield sites in non - blighted communities.
While anti - sprawl and social justice advocates alike have raised alarm, empirical
research has not yet explored this controversial new use. A number of TIF
developments around the country, however, provide insight into the implementation
and impact of "greenfield TIFs."
As the Economic Development Advisory Board (EDAB) of Orange County, North
Carolina, seeks new strategies to grow the county's uneven tax base, TIF should be
considered. Because few if any blighted areas exist in the county's jurisdiction, any
TIF district world have to encompass greenfield land, and these rural sites would
pose unique challenges for TIF implementation.
Nevertheless, considering the qualitative success and popularity of TIFs nationwide
and given Orange County's interest in exploring the financing mechanism, I have
presented the Advisory Board with the following: a background and literature review
on TIF; three brief case studies on "greenfield TIFs;" and a table of additional
financing strategies to consider. These items provide a foundation on which to
consider tax increment financing. Moving forward, it is my hope that Orange County's
leaders, who are most knowledgeable of location- specific issues, will be able to use
this information to create an economic development strategy most appropriate for
the county.
II. Background
TIF was first developed in California in 1952, but the tool did not gain widespread
popularity until the late 1970s (Man and Rosentraub 524). This sudden surge was in
response to decreased funding for economic development, the result of "tax revolts"
like California's Proposition 13, as well as a declining role of the federal government
in local economic development. Not requiring upfront tax dollars, voter approval, or
federal aid, TIF was a financing innovation.
TIF functions in the following manner: in accordance with requirements set forth in
state enabling legislation, counties or municipalities identify a geographically -
delineated district and assess its property value, establishing a "base rate" of
taxation. The locality then takes out bonds to finance public improvements. For a
period of time, the appreciation in property value will be "captured" and maintained
Levengood 3
locally to pay off the bonds and fund continual improvements exclusively within the
TIF (Blocher 3).
Though intended for use in blighted areas, TIF may be used in a variety of settings.
According to North Carolina legislation, cities and counties may establish TIF
districts in areas that are "blighted, deteriorated, deteriorating, undeveloped, or
inappropriately developed from the standpoint of sound community development
and growth" or which are otherwise "appropriate for rehabilitation and conservation
activities" or "for the economic development of the community" (Blocher 6).
In these areas, local governments may use TIF for a variety of uses, which likewise
are governed by state legislation. In North Carolina, these uses include physical
infrastructure, like water and sewer, streets and sidewalks, and parking facilities, but
also civic, cultural, and entertainment facilities; hospitals; low- income housing;
historic preservation; and industrial development (Blocher 5).
Given the risks borne by local governments when adopting TIF, financial viability is
an essential consideration. Furthermore, understanding how that viability translates
into economic development is critical. Qualitatively, many TIFs do succeed in
attracting investment, combating blight, and paying off initial costs; news of this
perceived success has stimulated TIF use across the nation.
In spite of this positive attention, TIFs have also garnered criticism. One major
critique is that TIFs do not create net economic gain, but simply attract or re- orient
growth away from other parts of a city. Other critics argue that TIF evaluation is
unable to account for the problem of "but for " — whether or not that development
would have occurred "but for" the TIF. Additional concerns include the strain
successful TIFs may place on existing public resources like schools and parks; and
the effect of rising property values on existing low - income residents (Blocher 9).
Existing literature has attempted to draw out these criticisms while measuring the
impact of TIFs on their surrounding communities. The earliest empirical analyses of
TIF compared localities employing TIF to matched pairs without the financing
mechanism. In one of the first studies in 1990, Anderson compared municipalities in
Michigan and determined that TIF had a positive relationship with aggregate
property values. Man and Rosentraub later found a similar relationship in Indiana,
regarding residential property values specifically. While most of these analyses
showed a positive association, Dye and Merriman observed a slightly negative
relationship among municipalities in metro Chicago. Their explanation, which
addresses a major critique, is that the TIFs had channeled investment to less
productive parts of cities, causing an overall aggregate decrease in value (Dye and
Merriman 309).
Because TIFs usually encompass only a small percentage of a city's total jurisdiction,
aggregate analysis is problematic. More recent literature has attempted to measure
the impact of TIFs on a sub - municipal, disaggregate level. The results have been on
Levengood 4
the whole inconclusive. Weber, Batta, and Merriman found mixed results among
industrial districts in Chicago, and Smith, like Man and Rosentraub, observed a
positive relationship with residential property value.
Beyond their effect on property values, TIFs may produce a range of negative
consequences. One major concern highlighted by Weber is that TIFs impact
overlapping jurisdictions. Because property taxes are captured within the TIF
district, services that are provided at the city and county level, such as education,
may suffer. Further, TIFs may generate increased need for these services. If a
redevelopment project, for example, increases overall population, then the TIF will
have created additional demand for city and county services (Weber 621 -626).
Like many authors, Weber has focused her critique on Chicago. Employing over 129
TIFs, covering nearly 30% of the city's land area, with $400 million in revenues
Chicago has served as a TIF laboratory for both academics and policymakers
(Neighborhood Capital Budget Group). The city, however, is politically,
demographically, and economically distinct from most other places using TIP. As
local governments in suburban and rural areas turn to the financing tool, the
conditions of blight originally confronted in Chicago are no longer relevant. What
remains pertinent, however, are the traditional TIF critiques, which have arguably
become even more problematic.
III. Suburban and rural "greenfield" TIF
According to one report, "What was once a tool specifically created for urban
redevelopment is now used to fund nearly every kind of development on all types of
land" (Mayrl 2). In Wisconsin, this change has led to the majority of TIFs being
located in rural and less populous counties, an imbalance taking place across the
country (Mayr16).
The proceeded case studies seek to outline the risks and potential rewards of these
emerging "greenfield TIFs." Though isolated and in an economically depressed
region, the first case is relevant to Orange County because it was the first TIF project
in North Carolina, and the project's failure has impacted the perception of TIF in the
state. The remaining two cases include suburban TIFs in major metropolitan areas.
Roanoke Rapids, NC
Rural or small -town TIFs have become popular because greenfield land in these
areas is assessed for its "crop- growing potential." This artificially depressed value,
unlike in urban areas, can appreciate rapidly (Mayrl 6). Despite the likelihood of
appreciation, however, rural TIFs carry a relatively high degree of risk. Transaction
costs may be high; infrastructure may be costly to develop; and unlike in urban
neighborhoods, where a substantial demand for goods and services is usually
present or located within range, rural zones may lack proven demand.
Levengood 5
A case that demonstrates this problem is the failed "Carolina Crossroads" TIF in
Roanoke Rapids, North Carolina. Situated on a 123 -acre mostly greenfield site, the
2007 project was to become an entertainment destination to lead the economic
revival of northeast North Carolina. The district would include its centerpiece, a
country music theater operated by Randy Parton, as well as an amphitheater,
numerous hotels and retail stores, a billiards center, water park, and aquarium
(Roanoke Rapids TIF Summary).
Despite the city borrowing $21.5 to fund the project, as of 2009, only the theater, an
RV park, amphitheater, and one hotel had been constructed. The theater has suffered
mismanagement and was never able to attract the musical acts or audience the city
and had envisioned (Capitol Monitor 2009). Though the district failed to prosper
largely due to management issues, its use of TIF was supported by economic impact
analysis and was not an entirely bad plan (j. Morgan, personal communication,
December 4, 2009). That said, the expectation that the site would become an
entertainment destination for the state is dubious, and ultimately the city's risk was
not rewarded.
Chesterfield Valley, MO
Unlike in rural areas, TIFs in suburban jurisdictions are troubling, not because of
potential failure, but due to near certain success. Though this may seem like a
positive characteristic, the critiques against traditional urban redevelopment TIFs
become more acute in the suburban context. "But for" is even harder to prove, as
suburban development in growing cities is very likely to occur without incentives,
and channeling of investment from elsewhere is particularly troubling in the suburbs
because it comes at a cost to inner city revitalization.
The most criticized suburban TIFs have been those developed to accommodate
specific retailers. hi Forth Worth, Texas, for example, one TIF was created on
suburban greenfield to lure a Cabela's sporting store (McGraw 2006). This form of
incentivizing has been common in St. Louis as well, where "most TIF projects occur in
wealthy suburban malls to help developers offset high land prices" (LeRoy 5). Even
when these outcomes are not explicitly planned, a sprawling retail zone may result.
One notable example is Chesterfield Valley, Missouri.
At the suburban fringe of St. Louis, Chesterfield Valley suffered severe flooding in
1993 that rendered its lightly developed floodplain a greenfield. To induce
development in the area, the city created a TIF, and through bonds financed a
reinforced 500 -year levee, a highway exit, and various site improvements (Hesler
2003).
Chesterfield Valley's location in the path of impending suburbanization allowed the
TIF to become hugely successful; it is now home to what is reputed to be the world's
longest strip mall, as well as other properties including office buildings (Thomton
Levengood 6
2008). The district's enterprises have been such a boon to the city that the TIF was
retired 10 years before its intended expiration date (Vespereny 2008).
While this outcome may seem like a success story, it is instead a cautionary example
for places like Orange County. To areas that value "smart growth," the success of tine
Chesterfield Valley TIF is anything but desirable. It promoted suburban sprawl
through low- density and auto - dependant development; and it subsidized inevitable
commercial development at a cost to the inner city (Luce 2003).
Mesa del Sol, NM
While most suburban greenfield TIFs have financed urban sprawl, a few have
supported sustainable development. One example is Mesa del Sol, near Albuquerque,
New Mexico. Currently the largest New Urban master - planned community under
construction in the U.S., at 20 square -miles Mesa del Sol constitutes the nation's most
expansive TIF (LeRoy 8 -9).
According to site's developer Forest City Properties, the desert greenfield will
eventually house 18 million square feet of office, industrial, and retail space; 37,500
homes; 3,200 acres of parks and open space; and numerous schools. The current
recession, however, has stalled the project and led to the postponement of residential
development. Before the downturn, however, the site had managed to lure a number
of businesses, including solar firms SCHOTT and Advent; two movie studios; a
banking firm; and a healthcare provider (New Mexico Business Weekly 2009).
While the development as planned might be desirable to Orange County, the case is
problematic for a number of reasons. For one, its success was dependant of the
continued economic growth of the region, which has stalled in the current recession.
Furthermore, even a "sustainable" New Urban development would impose costs on
blighted areas in other parts of the city. Finally, because the site is so huge, its impact
of overlapping jurisdictions cannot be understated.
Realizing that the site has indeed subsidized private development while setting aside
a huge tract of land that cannot produce tax revenues for the state, opponents have
led a political backlash, calling for the state's TIF legislation to be amended. In a
culmination of this fallout, in 2009 TIF - approval for a project similar to Mesa del Sol
was denied, despite having been all but guaranteed previously (LeRoy 9).
IV. Takeaways for Orange County
Because Orange County's jurisdiction contains no redevelopment districts or
"blighted" areas, the county could apply TIF only to greenfield sites. The
aforementioned case studies have illuminated the caveats of this practice.
Nonetheless, a unique combination of both rural and suburban characteristics in
Orange County affirms TIF as a viable financing mechanism.
Levengood 7
For one, the question of "but for' would be easily arguable. Although part of a major
metropolitan area, Orange County has not experienced typical suburban growth
because of restrictive land use policy and high taxes; therefore, as private investment
has routinely chosen neighboring jurisdictions, Orange County could argue that "but
for" a TIF district, development will not locate in the area. Additionally, as the county
is part of a highly productive region, demand for goods and services is present, and
the supportive institutions throughout the Research Triangle assure that a Roanoke
Rapids -style outcome is unlikely.
Finally, given the county's perceived "anti- growth" culture, TIF designation would be
advantageous because it does not require voter referendum and could be an
apolitical process. On the other hand, bypassing the process of civic engagement
could lead to TIF abuse, and if the districts promote urban sprawl, a political
backlash, similar to what occurred in New Mexico, might result.
Nevertheless, when used aside a comprehensive and innovative economic
development strategy, TIF remains a viable option for Orange County, as long as the
following recommendations are considered:
1) Orange County must identify developer interest and have a specific project /plan
in mind:
TIFs in North Carolina require a private component. Orange County could not merely
use the financing mechanism to develop infrastructure in its EDDs and then hope
that developers then express interest Q. Morgan, personal communication, December
4, 2009). Having a private developer or specific firm signed on to the project as well
as a concrete plan makes the TIF legally viable and increases the likelihood of
success.
2) Development must not contribute to urban sprawl:
Malls, strip shopping centers, and traditional single- family subdivisions should be
avoided. To address this concern, North Carolina's enabling legislation has already
set forth the requirement that "within a TIF district itself that is located outside a
city's central business district, no more than 20% of the square footage maybe given
over to commercial uses other than office space" (Blocher 6).
3) New Urban developmen t should be considered as a potential TIF use:
New Urban communities have been popular and successful in Orange County and
could be financed through TIP. As they include both residential and commercial
components, a New Urban development would contribute broadly to the county's tax
base in a manner compatible with established community values.
Levengood 8
4) TIF could be used to create an industrial corridor centered around nodes of
density:
As Orange County has expressed interest in using TIF to develop its EDDs, these sites
have the potential to be part of a more comprehensive strategy. The county, for
example, could promote the districts as three nodes of density along 1 -85 that could
connect the Piedmont Triad and Alamance County to the west with Durham to the
east, forming an industrial corridor. If density is promoted in these areas, then other
developers, without TIF incentives, might take advantage of cheap rents and
established infrastructure to develop along the corridor and eventually connect the
EDDs.
5) The countyshouldstriveformunicipa ]involvement:
Though an Orange County - administered TIF would be located on unincorporated
land, there is opportunity for city /county cooperation. Ideal development would
create linkages; for example, while a firm might locate its manufacturing operations
in an unincorporated TIF, it could locate another aspect of its operations in Chapel
Hill or Hillsborough. This approach would exploit location advantages both
specifically, in terms of where within in the county each firm or operation would
locate, and also broadly, in that the county could use its amenities, including those in
its cities, to attract outside business.
V. Additional Strategies
While TIF is one strategy Orange County should consider pursuing to grow its tax
base and promote economic development, a number of other development finance
mechanisms have been employed by North Carolina jurisdictions. The following
chart introduces each strategy, with a summary of pros and cons. The first four are
more traditional mechanisms, whereas the final three are newer to the economic
development "toolkit" and have, with a few exceptions, been relatively untested in
the state (See Appendix).
VI. Conclusion
As Orange County proceeds with plans to reinvent its economic development policy,
the EDAB should consider TIF, as well as other financing tools. A number of
characteristics of the county make TIF implementation both problematic and
advantageous, and the case studies in this report have sought to uncover this
dichotomy while providing examples of positive and negative outcomes. By
recognizing caveats and pursuing ideal development, Orange County has the
unprecedented ability to craft TIP policy that, if part of a comprehensive and
innovative plan, could steer a nationwide phenomenon, the "greenfield TIF", toward
a more equitable and sustainable future.
Levengood 9
SOURCES:
Anderson, John. "Tax Increment Financing: Municipal Adoption and Growth."
National Tax Policy Journal, 40; 2, 1990, pp. 155-63
Blocher, J. and Morgan, J. "Questions About Tax Increment Financing in North
Carolina." Community and Economic Development Bulletin, School of
Government, University of North Carolina - Chapel Hill, Number 5, August 2008
Braun, Eric. 'Public Infrastructure: New Tools, New Opportunities. K &L Gates, power
point presentation, retrieved November 20, 2009.
Byrne, Paul. "Determinants of Property Value Growth for Tax Increment Financing
Districts." Economic Development Quarterly 2006; 2; 317
Dye R. and Merriman, D. "The Effect of Tax Increment Financing on Economic
Development." Journal of Urban Economics; 47, 306 - 328, 2000
"Forest City cuts Mesa del Sol staff in half." New Mexico Business Weekly, March 6,
2009
Hesler, Eric. "Tax revenue paid for improved levee." St. Louis Post - Dispatch. July 27,
2003
LeRoy, Greg. "TIF, Greenfields, and Sprawl: How an Incentive Created to Alleviate
Slums Has Come to Subsidize Upscale Malls and New Urbanist Developments."
Planning and Environmental Law. February 2008, Vol. 60, no. 2
Luce, Tom. "Tax Increment Financing in the Kansas City and St. Louis Metropolitan
Areas." Brookings Institute. April 2003
Man, J. and Rosentraub M. "Tax Increment Financing: Municipal Adoption and Effects
on Property Value Growth." Public Finance Review 1998; 26; 523
Mayrl, Matthew. "Efficient and Strategic TIF Use: A Guide to Wisconsin
Municipalities." Center of Wisconsin Strategy (COWS). December 2006.
McGraw, Daniel. "TIF Epidemic Infects Local Government." Budget & Tax News,
Center on Taxes and the Economy at The Heartland Institute, March 2006
Neighborhood Capital Budgeting Group. "How TIF Funds are Spent in Chicago."
Retrieved Dec. 1, 2009 from jrttp:jjwww.ncbg.org/tifsjtif spend.htm
Levengood 10
"Roanoke Rapids TIF Summary." School of Government, University of North
Carolina — Chapel Hill. Retrieved Dec. 2, 2009 from
http:/ /wwwsoguncedu /programs /tif /pdf /roanoke rapids /Roanoke %20Ra
Aids %20TIF %20summary.I2df?v =2
"Tax Increment Financing (TIF) In New Mexico: How It Works, Problems Identified
and Lessons Learned." Environment New Mexico Research and Policy Center.
July 2008
"The Randy Parton Theater: A Comedy of Errors That Has No One Laughing." North
Carolina Capitol Monitor. January 30, 2009
Thornton, Mark. "Chesterfield provides boost to St. Louis office market." Midwest Real
Estate News. Vol. 24, issue 7, 2008
Vespereny, Cynthia. "Valley retires TIF district 10 years ahead of schedule." St. Louis
Business Journal. April 4, 2008
Weber, Rachel, et al. "Does Tax Increment Financing Raise Urban Industrial Property
Values ?" Urban Studies 2003; 40; 2001
Weber, Rachel. "Equity and Entrepreneurialism: The Impact of Tax Increment
Financing on School Finance." Urban Affairs Review 2003; 38; 619
APPENDIX
G.O. Bonds
Genera' obligation bonds backed
1 p
Few restrictions —any capital
1)
Musl be approved by
by local government's full faith
improvements that promote ED
voter referendum
and credit taxing power
2p
Appropriate when private
2)
Does not cuarantee
develcpmert is not imminent :
private investment
Revenue Bonds
Bonds are paid off through net
1p
Voter appra al not necessary
tj
High interest rates
earnings of self - supporting utilty
2y
Terms may be longer than 2>i:
2)
High iissuance costs
orenterprise: ooverage
nears
3)
Complicated debt
requirements: not a geocraphi ;al
3}
Can be used for vraten"sewerand
inmment compared to
instrument Gka TIF
other public utilities
GO (bonds
Private Activity
Acauritis industrial Fadlitiesand
I
Gri2ditof county not plddged
1j
Limitetiuse— ariyfor
Bonds and
Pollution Control Financing
2k
Private firms attracted by lower
manufacturing facilities
Industrial
Authority or the Nolh Carolina
tax-exempt -at-es
2)
5tric. requirements
Revenue Bands
Capital Facilidies Finance Agency
; 3)
Can be used to lure target
issues bands at tax - exempt rase to
i -idustries that create ' hg'h - paying
(IRB)
private firms Tor manufacturing
jobs
and R&3 facilities (up to $16
million)
Installment
'Syhthedc TIE` — lease- pirchase
1 }
Like T F, bul without geographic
t)
COPS for major projects
Financing
arrangement with certificates of
rigid it} --debt service may be paid
have higher inte•est
participation (COPs) to finance
from any revenue source
rate=_ than GO bands
public portion of a ,project; bonds
2p
Voter approval not necessary
2j
Mies not emphasize
am usually paid iii by increased
3k
Less complicated process than TI
°place- based"
revenues resulting front project
and has been very popular in
development
North Carolina
Deveto,pment
New tool in NC —since 2006;
1)
Provides certainty to both developer
it) Restrlctions —only
Agreements
resemble negotiatec contracts,
and government
for large sitas
but must be approved by local
2)
Shares risk(responsibility
2)
Complicated
governing boa d; impose
3)
Coordinates funding and installation
process
obiigations for property developer
of infrastructure
3)
Contracts legally
and local government- -most
4)
Especially suited for large and complex
bindirg (pro
common: cost- sharing on
developments
and ocn)
provision of intrastrtsMre
5)
Encourages creative and large scale
master planning
Special
New tool in N -since 2008;
1 r
No government obligation to repay fonds
1)
Requires irritative
Assessment
initiated by petition flf majority cf
- burden fully on p- operty € wrers
and willingness of
Districts (SAD)
owners vAthin proposed dstrict;
2)
Fiscally neutral to coverrment
property owners
debt senice paid by owners of
3)
Can create additional tax revenues
2)
Somewhat limited in
benefited property; assessments
4)
Unlike Municipal Service Districts
types of
pail in annual instalments;
(NI313s) and BIDS, can be used outside
infras7mcturel
potential uses- waterlsewer, flood
of downtewn�, angreenfeld sites
services funded
control, public transport, schooK
streets,sidewalks:
(e.g'. Lange at the Lake in
Niordsvil19) ,
Revenue 'Sharing
RgreemEnt by group of governing
1)
Could be used to coordinate among
'1)
Requires ;large
bodies (city. county, ED
jurisclictons within OC or between CC
degree of regional
corporation) to jointly finance
and neighboring countiesIED groups
cooperation
economic devs1opment projects
2)
'Addregsas barnatstcr an:ry for major
2)
Henefitsico is to
and share revenues:
capital- intensve projects
each ocality may be
(e.g. Ker -tsar Hub)
3)
Esplo[ts competitive advantages of each
unequal
locality as well as regional resources
4)
Promotes ,regional cooperatior and
competitiveness and industrial linkages
Part D— Possible Metrics for an Economic Development Goal
Statement, Sarah Satinsky
ill IPage
Sara Satinsky
December 14, 2009
PLAN 773 / Fall 2009
Dr. Meenu Tewari
POSSIBLE METRICS FOR AN ECONOMIC DEVELOPMENT GOAL STATEMENT
INTRODUCTION
This document reports findings for the task of identifying metrics for an Economic Development
Goal Statement written by the Orange County Commissioners in North Carolina, and recommends next
steps. Specifically, the statement says the Commissioners aim to, "Implement planning and economic
development policies, which create a balanced, dynamic local economy that promotes diversity,
sustainable growth, and enhanced revenue while embracing community values."
To the author's knowledge, there is no single set of metrics to assess county economic
development. This document is intended as a starting point for the Commissioners. It was written
through the lens of an adaptive process that is a hybrid of a top -down approach to measurement in
which an outside expert suggests quantitative measurements and a bottom -up approach rooted in an
entirely participatory process in which Commissioners choose and prioritize measures (Reed, Fraser, &
Dougill, 2006). The end result is that those using the metrics (e.g., the Commissioners or otherwise
appointed responsible party) will determine the final list, but not the author of this document.
The document is written as both a paper to fulfill course requirements and a memo with the
intended audience of the Commissioners, their staff, and volunteers who work with the Board. As a
paper for coursework, it includes features unlikely for a memo, such as the names of researchers, a
works cited page, and double- spacing. As a memo, it is formatted with page breaks so that sections can
be removed and used individually, as would not typically be seen in a paper. Subsequent sections
include: i) background on measurement ii) a description of the methods used in research for this
document iii) definitions of key phrases and their characteristics, and iv) a list of action items.
ABOUT METRICS
"How we measure progress reveals our values and shapes our future."
- Website of The Glaser Progress Foundation, 2008
Metric identification is a process of determining how to operationalize objectives and perceived
outcomes. In this instance of the Commissioners' Goal Statement, the goals of creating a balanced and
dynamic local economy, and promoting diversity, sustainable growth, and enhanced revenue while
embracing community values work toward an implicit ultimate outcome of improved quality of life for
county residents. Metric identification is one part of a broader evaluation process. For the task at hand,
this component has been extracted from the broader process and worked on apart from it (Weiss,
1998).1 Typically, metrics are determined based on objectives, which stem from identified goals (see
Figure 1).
In addition to operationalizing objectives and outcomes, metrics are used to encourage
accountability of policymakers toward set goals and objectives (Centers for Disease Control and
Prevention, 1999). Collecting data on variables over time aids users in showing change and achievement
toward specific objectives. Therefore, two items are important: specific objectives of goals from which
to derive metrics and the baseline measurements that have been collected for use as a comparison
point in the future. For both items to be completed early in the process, it is preferable that metrics are
identified during strategy development, and prior to plan or policy adoption and implementation. The
author of this document recommends that moving forward, metric identification and evaluation in any
planning process be undertaken in this way.
For this document, the author identified possible indicators of the Commissioners' goal statement.
When more specific objectives are set, the responsible parties ought to revisit the metrics identified to
gauge their connection with the identified objectives and determine appropriate adjustments.
According to Carol Weiss, evaluation is "a systematic assessment of the operation and /or the outcomes or a program or
policy, compared to a set of explicit of implicit standards, as a means of contributing to the improvement of the program or
policy."
METHODS
sed in this context, each of the four key phrases in the
An initial step was to define as they are u
cal economy," "promotes diversity, " "sustainable growth,"
Commissioners' goal statement: "dynamic lo
and "community values." The author searched online for publicly available meeting minutes and
agendas for Commissioners' discussion of these phrases, to better understand the sentiment with which
they were used. In addition, the author used seemingly appropriate interpretations of the phrases cited
in outside sources. Outside sources include documents from planning departments in other
jurisdictions, the academic literature via PubMed and ISI Web of Science, and sources on the Internet via
Google. These same resources were used to find metrics in place elsewhere that may capture the
essence of the defined phrases in the context of Orange County. Table 1 lists links to select sources used
here and that may be informative in the future.
3
DEFFINITIONS AND ATTRIBUTES OF THE KEY PHRASES
Dynamic Local Economy
Definition
As defined here, a dynamic local economy:
adequately addresses county revenue needs, allocates costs and benefits appropriately,
and is one in which education, jobs and development keep pace with technology.
This definition and metrics in Table 2 in the appendix are drawn from:
• Orange County Board of Commissioners meeting minutes
• Academic literature about static v. dynamic economies
• The Innovation Index (see Table 1)
• The New Economy Index (see Table 1)
Key Attributes
In the literature on economic development theory, a dynamic economy is characterized by changes
of social phenomena in time, and in this way is distinguished from a static economy (Kuznets, 1930). In
a dynamic economy, the formation and dissolution of companies, including small businesses, play a
large role, as does entrepreneurial behavior (Glover, 1999). Broadly speaking, entrepreneurship refers
to a class of economic actors who are visionary in their re- purposing of current resources or in bringing
new products to market (Malizia & Feser, 1999). Entrepreneurial activities are suggested here for
measurement because they reflect attitudes that are interpreted as a signal of dynamic economic
formation (Coyle & Quah, 2002). Additionally, a workforce that is skilled in creating, using, and repairing
current technologies associated with a new economy is key.
Promotes Diversity
Definition
As defined here, an economy that promotes diversity:
includes a variety of industry and firm types and sizes, skill levels required for jobs,
wages, types of employment, and ownership models.
The definition and metrics in Table 3 are drawn from:
0 1994 OC sustainability policy
• Academic literature on diverse economies
• Sustainable Santa Monica (see Table 1)
• University of Wisconsin- Cooperative Extension
Key Attributes
Initially, the author interpreted the Commissioners' meaning of "diverse economy' as similar to
what Wagner and Deller describe, in citing others, as "a great number of different types of industries,"
"the extent to which the economic activity of a region is distributed among a number of categories," and
"in terms of balanced employment across industry classes" (Wagner & Deller, 1993). A diverse economy
was interpreted as one that includes a range of worker skill sets, business and organization types, and
industry base. As Wagner and Deller mention, there is an implicit assumption that a larger economy is a
better economy (Wagner & Deller, 1993). The author of this document enhanced that definition to
include industry size, and spectrum of skills, wages, private and public businesses, ownerships models,
and acknowledgment of multiple forms of economy in a geographical entity. The measures suggested
here focus on diversity indices, such as the Hachman Index, which uses weighted location quotients.z
Two categories of items not captured comprehensively in these metrics merit conversation as points
for future research and possible student projects. One category is informal labor characterized by non -
market transactions and alternative economies, which are difficult but possible to assess in a locality.
Due to the limited time and resources for this initial research, the metrics included here focus primarily
on more formal labor, with only a few measures of "alternative economies," such as the presence of co-
operatives and Community Supported Agriculture arrangements (Gibson- Graham, 2008).
The second category not captured here is a measure of inter - industrial linkages, or formal and
informal interactions between industries. Wagner and Deller suggest that an Input- Output analysis
completed using the IMPLAN program could be used to determine inter - industrial linkages between the
county and economic actors across the region (Wagner & Deller, 1993). This would require physical
access to the program, data for input, and knowledge of how to accurately calculate linkages. In light of
time and resource limitations it is not addressed here, but is suggested for consideration in future work.
2 The location quotient (LQ) is the measure of relative concentration of an industry, where an LQ of
greater than 1 indicates specialization in a particular industry. The formula for LQ is ((total employment
in local industry i / total local employment) / (national employment in industry i / total national
employment)]. The Hachman Index (HI) measures distribution in a given area.
Sustainable Growth
Definition
As defined here, sustainable growth:
et current needs without
uses and protects its human and natural resources to me
compromising the ability of future generations to meet their own needs, by
integrating long -term environmental protection, social equity, and economic
prosperity with development in the county.
Definition and metrics in Table 4 are drawn from:
a OC 1994 sustainability policy
• Academic literature
mission's Sustainable Growth Working Group
• Mid -Ohio Regional Planning Corn
9 Port Moody sustainability Index (see Table 1)
• Sustainable Santa Monica (see Table 1)
• Sustainable Seattle (see Table 1)
Key Attributes
There is no single definition of sustainability. Researchers at the University of Wisconsin-
There
comprehensive list of fields that contribute to
Cooperative Extension identified the fo
sustainability and that are used in the metrics in Table 3: in each of the broad aareasswhich form then
environment, and government. Sub - groups identified with and individuals
basis of sustainable growth measures cited in this document, are as follows: economy
(energy, health, housing, individual wealth, population, and transportation), business (business diversity,
nd tourism), education (primary and secondary education, post-
business growth, business stability, a
secondary education, adult education, and cultural education), environment (air quality, land use and
biodiversity, water resources, management of societal wastes, and citizen involvement), and
government (citizen involvement and effectiveness of public services) (Liebl, Fisher, Andrews, et al.,
1998).
As indicated in sub - headings of the tables in the appendix, there is crossover between metrics for
sustainable growth and those for promoting a dynamic economy and diverse economy. Two important
areas of measure exclusive to the sustainable growth spreadsheet are green technology and clean
technology. Following is a specific explanation of what is meant when referring to each. Areas of focus
in green technology include solar and wind energy generation, energy storage, fuel cells and hybrid
systems (Henton, Melville, Grose, Maor & Gibbons, 2008). Patents in these areas are listed as a possible
metrics because strong patent activity may reflect substantial research and development. Broadly
speaking, clean technology includes new technology and processes that enhance efficiency, reduce or
eliminate negative ecological impact, and improve the productive and responsible use of natural
resources (Henton, Melville, Grose, Maor & Gibbons, 2008). Clean technology industry segments, as
identified in a Green Innovation Index developed by a California organization named Next 10, are listed
in Figure 2 in the appendix.
Community Values
The Zack o a current, comprehensive community values assessment is a gap identified during the
research undertaken for this document. To the authors knowledge, discussion of community values for
Orange County in Board documents is limited to Commissioners' perceptions of values among county
residents, but not a measurement of such. Moreover, the notion of community — as distinct from
geographically based terms, such as neighborhood and locality— is a much - debated term. Communities
have been defined many ways, including as spatial units that meet sustenance needs, units of patterned
social interaction, symbolic units of collective identity, and groups of people that together act politically
to bring about change (Minkler & Wallerstein, 2008).
Looking for outside sources, the author initially sourced a document published in 2000 titled
"Shaping Orange County's Future." In that report, seven categories of values are listed for Orange
County: l) sustainable, renewable use resources 2) towns are friendly and accessible, centers of life, 3)
rural areas retain natural, visual, and economic resources, 4) excellent education, S) commitment to
well -being of all individuals, 6) government that provides necessary services fairly and establishes ties
with region and state, and 7) shared sense of community.
However, the document is nearly a decade old and the methods with which the process was
undertaken, as well as who participated in it, are not clearly delineated. Therefore, the final report was
not used as a representative assessment of community values.
The author recommends using a third -party to survey Orange County residents about their values
regarding the future of the county. Doing so will be informative to indicator, objective, and goal
identification as well as strategic plan, since the Board of Commissioners aims to work in a way that
aligns with community values. To do so, it will be important to have documentation of those very
values. In the interim, examples of types of measures of community values are included in Table 5.
W
ACTION ITEMS
1, Work with a third party that will formally assess values in Orange County through a survey of a
representative sample of residents.
2. Set SMART objectives. In the context of this document, goals are interpreted to mean beofd;
brief statements of intent that provide a focus or vision for planning. Goals are non -sp
non - measurable, and usually cannot be attained (San Francisco Department of Public Health,
2000 ). Objectives are meant to be realistic targets. SMART is an acronym that stands for
specific, measurable, achievable, relevant, and time - framed objectives. Further explanations of
these components are below.
Specific: What exactly are we going to do? With or for whom?
Meade: In the ideal world is it measurable? In our world, is it measurable?
Achievable: evable: Can it be done in the given timeframe / political climate / budget?
Relevant: Will this objective lead to the desired result?
Tim__ e_ framed: By what specific date will we achieve the objective?
The SMART acronym is used in setting process, impact and outcome objectives.
Process_ obLe ivies tell what you are doing and how you will do it. For example, by
December 2012, at least 10 Orange County residents will graduate from Durham Tech's
brownfields environmental technology job training program (Milliken, 2009 ).
Impact__ objectyes tell how you will change a knowledge or behavior in the short term.
For example, graduates of the program will be able to identify the components of
HAZWOPER and PPE.
Outcom__e ob= ctives tell the long -term implications of the program or action. For
example, by 2015, there will be a 20% increase in Orange County residents who work in
green technologies.
10
3. Prioritize metrics and select those that align with the set SMART objectives. Prioritization is
important because time and human resources limit what can be measured; there must be
restraint (Weiss, 1998). The first stage is to determine if a metric is essential. An example of
how to do so is in Table 6 in the appendix. The second stage is to rank the metric by
measurability, feasibility, reliability, relevance, and usefulness. Explanations of these terms and
an example are included in Table 7 in the appendix. These processes should be done
individually first, with discrepancies discussed subsequently between group members. Then,
choose the top 20 measures from each section as the final list of metrics.
4. Moving forward, develop metrics during the development phase of future plans and strategies
and prior to adoption and implementation.
S. Determine the responsible parties for collecting and maintaining data.
6. Set a schedule for responsible parties to collect and analyze data over time.
7. Determine student interest in possible future projects identified in this document: i) identifying
the multiple forms of economy in orange County (particularly informal economies) that are
challenging to measure and ii) measuring inter - industrial linkages between the county and
surrounding region.
11
CONCLUSION
Michael Callon (1998) wrote, "economics ... performs, shapes and formats the economy rather than
ommissioners' goal statement and
observing how it functions:' Finalizing the list of metrics for the C
collecting longitudinal data on them will enable the Board to determine what actions are most
appropriate to take in shaping the future of Orange County.
12
WORKS CITED
Callon, M. (1998). The laws of the markets. Sociological Review Monograph Series. Oxford: Blackwell.
Centers for Disease Control and Prevention. (1999). Practical evaluation of public health programs
workbook. MMWR. 48(No. RR -11).
Coyle, D., & Quah, D. (2002). Getting the measure of the new economy. London: The Work Foundation,
pp. 55.
Gibson- Graham, J. K. (2008). Diverse economies: performative practices for 'other worlds. Progress in
Human Geography, 32(5): 613 -632.
Glover, J. W. (1999). Testimony before the Subcommittee on Commercial and Administrative Law, U.S.
House of Representatives.
Henton, D., Melville, l., Grose, T., Maor, G., & Gibbons, B. (2008). California Green Innovation Index.
Accessed October 17, 2009. Available at: httpi//www.statsamerica.org/innovationL.
Kuznets, S. (1930). Static and dynamic economics. The American Economic Review, 20(3): 426 -441.
Liebl, D. S., Fisher, D. R., Andrews, E., et al. (1998). Promoting agriculture and business competitiveness
and a sustainable environment. University of Wisconsin- Cooperative Extension.
Malizia, E. E., & Feser, E. J. (1999). Entrepreneurship theories. In understanding local economic
development. Rutgers, NJ: Center for Urban Policy Research Press.
McKenzie, J. F., Smeltzer, J. L., & Neiger, B. L.. (2004). Mission statement, goals, and objectives. In
Planning, implementing, and evaluating health promotion programs: A primer. San Francisco:
Benjamin- Cummings Publisher.
Milliken, M. E. (2009, March 21). Durham Tech's brownfields program students going green. The
Herald -Sun.
13
Minkler, M., & Wallerstein, M. (2008). Improving health through community organization and
community building. In M. Minkler (Ed.) Community organizing and community building for health
(2 °d ed.). New Brunswick, NJ: Rutgers University Press.
Reed, M. S., Fraser, E. D. G., & Dougill, A.1. (2006). An adaptive learning process for developing and
applying sustainability indicators with local communities. Ecological Economics, 59: 406 -418.
San Francisco Department of Public Health. (2000). Community action training: Writing "SMART"
objectives. Accessed October 28, 2009. Available at: http:/Lwww.sfdph.org/dphZfiles/CAMdocsL3- -
ToolBox /Skill BasedActivities /WritingSMARTObis.pdf.
Wagner, J.E. & Deller, S. C. (1993). A measure of economic diversity: An input- output approach. (Staff
Paper No. 93.3). USDA Forest Services and the University of Wisconsin Extension.
Weiss, C. H. (1998). Developing measures. In Evaluation: Methods for studying programs and policies
(pp. 151). Upper Saddle River, NJ: Prentice Hall.
14
APPENDIX
Figure 1. Relationship between mission, goals, objectives, and metrics.
Adapted from McKenzie, J. F., Smeltzer, J. L., & Neiger, B. L.. (2004). Mission statement, goals, and objectives. In Planning, implementing, and
mer. San Francisco: Benjamin- Cummings Publisher.
evaluating health promotion programs: A pri
Figure 2. Clean technology industry segments.
EnerV Go ncration
Wind
Solr
Hydra Nlarme
BMWs
Geothermal
Other
Energ' {storage
Fuel Cells
Adwriced'Bateries
Hyhdd Systens
Ener+g, tnfrastructun
Management
Transmissior
EneTgy Etrf.ctency
Ugh:ing
Builcings
Glass
Other
Transportation
Vehicles
Logistics
Structures
Fuels
Water & LYaslev,,ater
WaterTreatment
Water Consevation
Was awater treatment
.Air & Environment
Clesnup Zefety
Emissions Control
trlonitoring+Oo mpliance
Tading & Offsets
matenais
Nano
Bo
Chemical
Other
PAanufa cturingI ndustrlal
Advanced Packaging
tdonitorino & Control
Smart Prcducton
Agriculture
Natural Pesticides
'Land Management
Aquaculture
Rscyc[incg & Waste
%cyding
wasto Tmotmoit
Source: Henton, D., Melville, J., Grose, T., Moor, G., & Gibbons, B. (2008). California Green Innovation Index.
16
Table 1. links to select sources.
Community
SO71.1LI.1
EBSITE
dicators blogspot.corn
DESCRIPTION /USE"
sted by Deputy Director of the Jacksonville
nity Council Inc.
or keeping abreast of emerging tools for measuring
orhood indicators.
Innovation
erica org /innovation/
:• Developed with a g rant from the U.S. Economic
Development Administration by Purdue Center for Regional
Development, the Indiana Business Research Center at
Indiana University's Kelley School of Business, Strategic
Development Group, Inc., the Rural Policy Research Institute,
and Economic Modeling Specialists.
New Economy Index
http: / /www.neweconomyindex.org/
Developed by the Progressive Policy Institute.
Port Moody Sustainability
Index
http://www.cit ortmoody com /NR /rdonl
Example of indicators measured longitudinally by a city.
yres/BAD7A1S9 -1638- 4679 -A2E1-
D51406B5E302 /87468 /AChecklistforSustain
ableCommunityDevelopment.pdf
Sustainable Santa Monica
http://`Www.smgov.net/Departments/`OSE/"c
Example of indicators measured longitudinally by a city.
Example of indicators measured longitudinally by a city.
ateeories /contentFullPaee.aspx ?id =4215
Sustainable Seattle
http / /www.b- sustainable.ore/
University of Wisconsin-
Cooperative Extension
http•/ /www.uwex.edu/ces/aa/sus/htmIZiLnad±i
Comprehensive list of indicators to measure sustainable
environment.
cators of cs.html
17
Table 2. Metrics for "dynamic local economy."
jD# . INDICATORiDESCRIPTION
REFERENCE; if available
Tax revenue
1.1
Annual commercial tax revenue in count
1.2
Annual residential tax revenue in count
1.3
Annual ratio of commercial tax revenue to residentai tax revenue in count
Business size (emphasizing role of small firms)
1.4 Number of businesses in count - by employee size
1.5 Size of businesses in coun that created or lost 'o)s in most recent fiscal ear -
1.6 Percent of businesses in counly with less than 20 emplo ees
1.7 Annual business starts in county per 1,000 - by em to ee size
1.8 Annual business failures in count er 1,000 - b emplo ee size
Jobs in gazelle companies (companies with annual sales revenue growth 20
1.9 ercent or more for four strai ht years as a share of total employment.
New Econom Index
Workforce characteristics
Sustainable Santa Monica
1.10 Ratio of 'obs to households in county
Sustainable Santa Monica
1.11 Percent of coun residents emplo ed in count
1.12 Median household income of county residents
1.13 Hours of em to ment to sIlnnort basic needs for county residents
1.14 Median em-1-11-1 a ment for businesses in coun to worker
1.15 Avera a level of educational achievement for count residents
1.16 Mana ers rofessionals and technicians as share of total count workforce
New Econom Index
Innovation inputs
1.17 Mid -a ed o u residelation rowth rate for coun its
Innovation Index
1.18 Percent of count residents a ed 25 -64 with some college or an associate's
Innovation Index, Sustainable Seattle
1.19 Percent of county residents a ed 25 -64 with a bachelor's degree
Innovation Index• Sustainable Seattle
1.20 Annual change in hi h -tech emplo ment share in count
Innovation Index
1.21 Anunal thane in technolo -based knowled e occupation share in coun
Innovation Index
1.22 Avera e venture ca in, investment per $10,000 gross metro olitan roduct
Innovation Index
1.23 Avera e rivate development and research, per $1,000 compensation
Innovation Index
1.24 Broadband densi in rn,,ntv
Innovation Index
1.25 Chan e in broadband densit in count
Innovation Index
1.26 Avera e establishment churn ratio of number of new start-ups and business
Innovation Index
1.27 Annual number of small establishments in count per 1,000 workers
Innovation Index
1.28 Annual number of large establishments in county, per 1,000 workers
Innovation Index
(continued on next page)
19
20
Table 4. Metrics for "sustainable growth."
ID# INDICATOR DESCRIPTION -- :REFERENCE' if available
Green tech"! /o + innovation
3.1 Icounty
Annual number of patents registered by businesses or residents in the
—
Green Innovation Index
Patents registered by businesses or residents in the county in green
technology (solar and wind energy generation, energy storage, fuel
cells and hybrid systems)
Green Innovation Index
Venture ca ital investment in reen technolo in coun businesses
Green Innovation Index
Venture capital investment in clean technology in county businesses
Green Innovation Index
Annual rowth in the number of reen 'obs in the count
Green Innovation Index
Annual rowth in the number of reen establishments in the county
Green Innovation Index
Current number of climate policies in NC relevant to the count
Green Innovation Index
Number of I-"n certified reen buildin sin count
Port Mood Sustainabilit Checklist
+individuals - health
r
Percent of coun
Count residents with access to prima health care
Universi of Wisconsin - Cooperative Extension
County residents living within 500 meters of industrial or hazardous
area - b race /ethnici and income
Universi of Wisconsin -Coo erative Extension
+ individuals -
Ener consum tion b count indust er ca ita
Universit of Wisconsin -Coo erative Extension
Ener used from renewable sources by indust in count
Universi of Wisconsin- Cooperative Extension
+ individuals - housing
3.14 County residents affording median home sale price University of Wisconsin- Cooperative Extension; Sustainable Seattle
3.15 Median rent in county as percentage of er capita income - Universit of Wisconsin- Cooperative Extension; Sustainable Seattle
3.16
Home ownership rate in count
Universit of Wisconsin -Coo erative Extension
3.17
Number of housing units in county set aside for low -to- moderate
income residents
_
Universit of Wisconsin -Coo erative Extension
(continued on next page)
21
(continued on next page)
22
(continued on next page)
23
24
Table 5. Sample metrics of community values.
25
Table 6. Example of prioritization stage 1.
Below are the criteria with which to judge the priority of each metric. Only those judged as essential to measurement should be kept for stage 2
of prioritization, which is described in table 7.
Below is an example of how the spreadsheet would look for stage 1 prioritization, using the first indicator from the "dynamic economy" list. It
includes the metric ID #, the metric itself, and the code assigned by the reviewer, in this case essential. It was marked essential because part of
the definition of a "dynamic economy" is one that addresses county revenue needs.
ID# INDICATOR DESCRIPTION, CODE.
1.1 Annual commercial tax revenue in coun E
010
Table 7. Example of prioritization stage 2.
Below are the criteria with which to assign each metric a number in phase 2. The numbers will range from 1 to 5 (one is low and 5 is high). The
first criterion is measurability, which asks in the ideal world, can this item be measured? The second criterion is feasibility, which asks, given
constraints in Orange County —that is, in the real world —can data on this measure be collected in a timely way and at reasonable or no cost.
The third criterion is reliability, which asks whether different people over the years can collect measure reliably. The fourth criterion, relevance,
asks to what degree the metric is associated with actions by the Board. The final criterion, usefulness, asks if the information gained from using
this measure is critical to decision- making.
Below is an example of how the spreadsheet would look for stage 2 prioritization, again using the first indicator from the "dynamic economy'
list. It includes the metric ID #, the metric itself, and the number for each criteria assigned by the reviewer. The metric was marked a 5 according
to each criterion, except relevance, which was marked a I It was marked as such because there are outside factors that impact this metric
(e.g., general economy, outside factors that influence location decisions).
27
Part E — Structuring Economic Development, Megan Johnson
1391Page -
OVERVIEW lob Capital
In 2008, the Research Triangle Regional Partnership creation Investment
(RTRP) welcomed more than $1.2 billion in capital 104 $142,000,000
investment from new and expanding firms, adding 6,535 Chatham 1,310 $762,000,000
new jobs.' The majority of that investment was centered orange o $0
within The Triangle itself— Durham and Wake added wake 4 0 $165,000,000
$762 million and $165 million respectively.
RTRP 6,535 $1,204,000,000
Orange County announced no new jobs or investment Figure 1: Announcements, 2008
that year.
As of August 2009, Durham and Wake counties had each announced the addition of more than
$2o million in investment and 400 jobs. Orange County had announced $2 million in
investment and twelve jobs.
The numbers speak for themselves: Orange County is not keeping pace with its neighbors.
This report will explore what can be done to improve economic development outcomes in
Orange County. It begins with an exploration of how the economic development function is
structured and funded in counties across the Research Triangle Region, looking at the
advantages and disadvantages of public and private organizations. it then explores how change
could be approached in Orange County.
It concludes with one primary recommendation: if Orange Count's Board of Commissioners
are serious about economic development, financial resources should be made available to
support the creation of a comprehensive, policy- driven economic development strategic plan.
if the level of commitment is not sufficient to support the investment in a strategic plan, I
recommend the Board assess the feasibility of transitioning economic development
responsibilities to a private entity such as the Chapel Hill - Carrboro Chamber of commerce.
GURRENTSTATE
The Orange County Economic Development Commission ( OCEDC) operates somewhat
autonomously from county government. The OCEDC's Economic Development Advisory Board
provides support and direction for the EDC, while the County Board of Com
ti cal level, this
determines overall economic development priorities and funding. From a p
structure creates a challenge for the OCEDC staff as it tries to set organizational goals and
mmissioners to
ems to
priorities. The Economic Development Advisory Board looks o be waiting for the Board o r the Advisory
f Co
state its priorities, while the Board of Commissioners se
Board to give them direction. The end result of this is the limited effectiveness of the OCEDC as
1 "August 2009 County Profiles," North Carolina
t commerce Economic
Development intelligence System. https: //
1
erate without well in his clear direction. Then Interim County Manager Franklin Clifton
it attempts to op September 2009 report to the Board of
summarized this phenomenon
Commissioners: development. There
The County needs a comprehensive approach result economic attempting e to "sell"
is no uniform strategy in place. Staff issuo�tantwithout a clear understanding
and development as imp ort of ED as
economic diversity e County. Beyond general conversation in supp
of what ED is in Orang d in support of unidentified
a priority, limited effort or investment has evolve
goals? 's 2005 to 2010
e County
Ian benefited from tremendous citizen ct cal support.
This trend is reflected in rtn the
novation 3t The p associated with ran a lack of p
strategic plan, Investing
participation in its development but its vision was overshadowed V
Ian calls for the County to extend water and sewer into all hat would be Economic
As an example, the p political cap Ian has
et it fails to consider the financial the eve of its final year, the p
Development Districts, V Not sure jobs or the expected $125
necessary to support the ned adds tng• rivate sector j primary
tanned addition of 5,000 new p in each of its four P lace —
not delivered on the p property values. Furthermore, of p
million increase in non-residential prop Y
on its specified objectives.
categories — business asmade little to no progress c re, workforce development, an quality
Orange County resources,
support and insufficient financial/political tan.
complexity of the task, limited supp of EDC staff to implement the p
Given the comp Y empower the EDC (or
this tack of progress should not be viewed as a failing ro riED funding,
suggests an opportunity for the Board of Commissioners to eam d app p
Rather, it sugg development. With clear leadership development
another entity) to lead economic develop County
iy. It will require a strong
possibilities for smart, sustainable economic growth abound. However,
Withoutia vision for
in Orange County will not come easily or inexpensive ic sector support, Orange
led with ongoing private and p able of driving change,
commitment, coup ,n in new jobs and
what economic development will took like and leadership
es continue bring' g of their sideline as neighboring
County will remain onnhtheiir tax bases and contributing to the improved well -being
investment, diversifying
residents.
is the County ready to take control of its future economic
This suggests a critical question:
growth?
Orange County NC,
2 Clifton, Frank (2009)• "Work Session 0909102,"
Orange County Economic Development
http: /iwN ^ co.orange.nc.usJ000L vesting in Innovation, pdf
3 Slater, Ruffin et al (2005). "Investing in Innovation,
"Orange County, NC. xeSum8.05.pdf
,
Five -Year Strategic Ptah: 2005 -2010
http: //v WW.CO.orange•nc.us /ecodev /documents /Comp IeteStrat.PlanE 2
County
Department
1
Person ;
D S fl
figure 2: E E Structure y C01111ty
of economic development structures. The
Structure ment as a county function. As shown
The region's thirteen counties are home to an array ment
majority of these jurisdictions maintain economic develop while keeping
in Figure 2, counties most frequently structure the service assn of auton'omyvetop
s control. Nearly half of the region's cou tii zet o s
Commission. The Commission structure benefits from a eg rofit org
ment functions under private, not -for -p
strategy and direction under each count art of a focal Chamber
ment Corporations, Committees of 1o0 or p
structured their economic development ear to be more active and focused
either as Economic Develop ment Corporations, this is likely
of Commerce. To a large extent, these organizations app organization;
peers. In the case of Economic Develop to incorporate an
than their public - sector p public commitment necessary
attributable to the high degree of p
its experience guiding public - private activity
degr housed under the Chamber of Commerce benefit from e
whereas those organizations of the Chamber, particularly
institutional history
ion from under
Funding for economic development varies across the region
Currently, county level funding wake and Granville, to more than $2.5
For fiscal year 2010, the region's thine an counties'
eneral Fund dollars are
$200,000 on the low end, in counties such as Moore, $ 23 per cap
million in Durham (Figure 3)• budgeted at $
investment in economic development is
most commonly used to supp
ort economic development staff, infrastructure investmen s�
incentive payments and marketing.
Wake
* *Moore
Orange
*Granville
Vance
Johnstor
Franklir
Warrei
Durhar
chathai
Harne
Pers,
L
- -
rntal ED Public Investment
Wake
* *Moore
Orange
*Granville
Vance
Johnstor
Frankli,
Warre
Durhan
Chatha
Harne
Pers
L
�—
aar Capita ED Public Investment
$2,530,769
$17.78 !
$17.84!
Figure 3: FY2010 County -Level ED Funding
*Includes funding for county, regional and downtown EDCs
** 2007 funding, most recent data available
4
for other counties in the region, Orange County uses an above
support staffing. For fiscal year 2010,
Relative to budget Projections 's 414,762 economic
average amount of its economic development �0 pe gent of he County $414,7 expenses,
the County Manager recommended allocating
development budget to personnel services. With $141,612 allocated to operating
the EDC is limited in what it can do. stands in
The availability and allocation of economic development funds Orange County
S. As Orange County considers alternative structures, it
contrast to its neighboring communitie
biggest competitors are
may be instructive to consider how its closest neighbors and
approaching economic development.
Chatham county p speaks to the importance of county
s economic development story p
Chatham County eEconomic Development Corp oration (CCEDC) was
commitment. The Chatham County n decade, the CCEDC continued
c 3 organization. Over the following provided by the County -5
established in 1997 as 501() ercent of its funding p to develop
to function like a County department, with loo -percent
in 2007, the County commissioned UN Center for Competitive Economies (Cou
an economic development strategic plan. The resulting plan, adopted or the County, its
ent. The report, which is available
municipalities and the School Board
oach to economic crde00 development,
for the reorganization of the ED
to support a policy- driven app s o ortunities and challenges, incorporating
in full online, takes a hard look at the County pP
practices to create a
roving attraction, retention, and entrepreneurship efforts,
citizen feedback with data driven analysis and analysis of national best
series of recommendations y of p
as well as the County' q lace, infrastructure, and the EDC itself.
f this economic development plan, the C3E stated the CCEDC would
To deliver on the p romise of
politicization of the EDC by diversifying funding and
need to move beyond the p ment advocate.' The C3E noted that in
apolitical economic develop Political
establishing itself as an ap funding, perception of the EDC "as a p
dependence on County ment in the
addition to CCEDC's dep policy driven plan for economic develop a Position on
organization has been tied to a lack of a p Y and refining p
County, which leaves the EDC without solid research for developing
controversial issues. $
Who We Are" (2009)• Chatham County Economic Development Corporation,
a
http://Www-chathamedc.org/who-we-are
s omic Development Strategic Plan Final
Jolley, Jason G., et al (2008). Chatham County Econ private
Center for Competitive Economies, Frank Haw kins KenaRenort Final Version-
Report, Enterprise.
http: / /www. chat ?a meddc.00rrg /s n eafeadbefd846f52f46f415876e044028
full_report_O.pdf . php Y
6 Ibid, pg. 96 -101.
' Ibid, pg. 92 -95.
s Ibid, pg. 93. 5
The economic development strategic plan concludes with he follo`r ngdtatement, which has
bearing for Orange County as it considers a new approach
By commissioning this study, the Chatham County Board of Commissioners has
demonstrated their commitment to economic Corporation is under new board
The Chatham County Economic Development Corp implement this
and staff leadership and appears prepared to reorganize and
plan. Yet, Chatham economic development economic,
future success in
depend on the County s ability to overcome historic geographic,
g point for
political, and cultural divides. We hope this plan serves as a startin
overcoming this division and capitalizing on the present and future opportunities
to improve economic development for the citizens of Chatham County 9
Since approving the economic development strategic plan, the Chatham County Board of
Commissioners has committed $1.8 million to support economic development over the next
ing with the plan's recommendations to diversity funding by transitioning to
five years. In keep , the EDC is expected to pursue additional investment
public- private partnership structure
from private investors.
Critically, the EDC has actively worked to keep local residents engaged in its work. It hosted a
"Strategic Plan Implementation Summit at Central Carolina Community College in Pittsboro to arrying out
get feedback on implementation priorities and to identify citizen part rs in c Chatham, the EDC
implementation plans" in January 2009.70 Under the name opportunity
organized "a broad based advisory group of industry leaders, non -profits, private citizens, and
elected officials working in partnership to support the goals of the
referred locat on for emerging
Corporation and to position Chatham County as the strategic, p Opportunity
growth companies;' and in May 2009, the EDC hosted the first of its semi-an
.Chatham events to update supporters on implementation progress.11
9 Ibid, Pg. 101.
to "Strategic Plan" (2009). Chatham County Economic Development Corporation,
plan
http: / /www.chathamedc.org /who -we-are /strategic -
71 "Opportunity Chatham" (2009). Chatham County Economic Development Corporation.
http://Www.chathamedc.org/who-we-are/oppot"tun'ty-chatham
6
support economic
Durham County
1.3 million in 2008 to $2.2 million in 2009 and it is
Durham commits Sig $1.3 tgrown from $ resources and minimal staff time to su ment
development. Funding is used for economic develop
2.5 million in 2010. This funding Durham's County
budgeted to reach $ ort artner organizations (see Figure 4).
incentive investments and to supp p Greater
activities
Durham
.12
Manager serves as an ED contact, and on tracts devet the pGreater Durham Chamber o
Commerce to coordinate the Count
❑;a,tte 4: Durham Cowrty Economic Devel°p
nlent Program Overview
— —
MISSION implement initiatives that promote the
This mission is achieved by working closely with local economic development
The mission of Durham County's Economic Development Program is to develop and P
economic well being of Durham County.
organizations to aid and encourage new capital investment and the creation and retention of quality jobs for Durham
residents.
PROGRAM DESCRIPTION
Manager's Office. Acontract
s Economic Development Program is managed and staffed through the County
Durham Count✓
200. In addition, this budget includes operational
p ion" Partnership (RTRP) and
with the Greater DUrha Fohfevelo m Commerce t Program
provides budgeted ats$142, Ce m coordinating economic deludes Operational
s
activities in the county. Inc, (DDIj and membershi dues for the Research Triangle Reg
support funding for Downtown Du respectively-
in the amount of $54,000 and $38,211
W sEc that are schedul73S ents and the amount budgeted for each, through
ontinues to maintain its Economic Development Investment Program to encourage the location and ch, throe o s and industry. Comp 00
tual agreements in FY 2005 -10 include: erican Institute of Certified P 6ic Accounta• itol Broadcasting Comp Y ai, Inc: - $200,000 Data Center -- $107.142 • erck & Co., Inc. -- $200,000 itronex— $45,000 rata systems— $35,000 533,333 uintiles Transnational Corp:-$ 13Q000 nited Therapeutics COrporatlin) - $ development.
role is a supporter of economic develop Under this arrangement, the County s primary ment functions. Accordingly,
onsible for daily economic develop ment in the
private investment to support economic develop meet
The Durham Chamber is public ear economic develop
the Chamber leverages public and p a four-year art of Vision 3D, image,
County. It recently raised $2.5 Million as p development, job creation and Community
„13
initiative "designed to bolsbo�lpurham and its resjdents.
ensuring economic Prosperity
Durham County Government Recommended Budget Fiscal Year 2009-2010:
12 " 16, Durham County, NC.
Economic /Physical Development," pg. Budgets /FY09-
http: / /t^w� •CO•durham•nc.us /departments /bdmg/
tt Recommended/ PDF/ EconomicphysicalDevelopment.pdf
73 "Vision me ded /P, Greater Durham Chamber of Commerce.
ww.du rhamchamber.org /business /vision_3d.html
7
http: / /N,
Wake County ment is through its financing of
Wake County' s ma
infrastructure improv —
in involvement in economic develop ure 5). The County'
ements in RTP and of incentives (see Fig upgrades and
10.5 million for water and sewer system upg
FY2016 Community Improvement Plan includes a $10.5 million investment to economic
on-site and
development with "approximately $ rant payments. Funds are used to provide
related economic development business g the Board
provide payments as approved by
off -site water and sewer infrastructure ak (RTP) and to p ed water facilities in the Wake County
portion of the Research Triang rants.
of Commissioners for various business incentive D iltent Budget, 2010.2016
Figure 5: wake County Economic Develop
Element Summary:
Economic Development
Economic Incentives
Total Uses
Transfers From
General Fund
FY 2010 FY 2011 FY 2012 FY 2013
,,,nnntr .300,000
138,000 1,885,000 1,091,000 1,068,000
nnn 5.000
Fy Y0t5 FY 2016 FY10-16
30 — 2014 900,000.
300.000 ; —
i nMn Ono 884,000 726,000. 6,831',000 Ann
30,000 2,679,u0u 726,000 10,475,000
168,000 4,564,000 1,421,000 1,373,000 1,339,000 884,000
48,000 2,838,000 799,000 1,373,000 1139,000 884,000 726,000 8,007,000
12Q,000
120.000 1,726,000
Grant Furm 1.726,000 —
Municipalities _ _ 622,000 — 475,000
Transfer from 1,339,000 884,000 726,000 10,
Capital Reserve: 168,000 4,564,000 1,421,000 1,373, 000
Total sources — —
cIP operating
Impacts
Under acontract with the County, the Greater Raleigh
Chamber of Commerce, a 501(c)6 public -
coordinates Wake's economic development activities and initiatives. The
partnership, $12 million capital campaign, EDGE4 is In July
private p in the midst of a five-year, Chamber is currently
„
2010 Fiscal Year Adopted Budget" (2009), pg. 335, Wake County, NC.
r4
http: / /`�wlg. `' akegov. com /NR /rdc)nlyres /C"6D61A -64E9- 4816 -9E9
14199D3DBDDC /0 /fy2010.pdf Support" 2009), Greater Raleigh Chamber of Commerce.
15 "EDGE4 Growing Great: Case for
www.rateighchamber2.org/campaign2O()9/Pdf'/e'ge4—case.pd'
2009, the Chamber announced the campaign had already secured $10.2 million in investor
pledges to support economic development- 16 J
rtt Excerpt, Raleigh Chamber Capital Campaign
Figure 6: Case for SupPO
1 Conclusion
tpGLr t.,afive- Ye't= 12mipion economicd ve'oRnt• "n[mttativc -Ltkc, is VreCec£ <or'"uyc'tt 14 d`' <iyncd to
to* ot� 9rovAh and qualtty lit toit cnndnutn9 the
+G nninta n the area s Ros t ut�ac a{1op11oeaUOn In the e V shat twi{ hefP to S'enerate 4ic m�mcnt ut ntcesar Illou,
i E.• ,2aletg`r and ANate County wilt continue to Yield si9nfficant tangible tc salts, whid,
all tnentenlutn throu9 E[J i Is rowing great.
wilt ensure our Commun{ty 4
1 quantifiable Objectives
j ... , . , � . .. 7re measurable and attalna'oh and tviU set the standard tnr demonstrating
dives of LUGS 4 2010 o4�r the follov"1119 fFve
1 The soli s llu obi n;;sness corntnciPAY Startint3 in January
hrehtm on it) Vest,nent (or the wake CotmtY
years EDGE4 will'. ,r tke County
Lreato 5R Ilo not n sr Snh {n S
2., P't(:nnt
11 •
111c 'ease ase effect c buY�nc In .orte by 25 elX bo n
Uxn3asp the tndus'rtal a td omnterc,ial tlX base Ul
• Conduct LS00 evisttng Industry interactions foauc¢3 In targeted clusters
Budgeted Costs for Five Year Plan
57 million
?deg,onal Comf�ebtty ne <_`•
z f Cooperation t S million
t>1c -8u mc..�AWa t'O"and Career igi It Gn $T million
F ritsting Inucstr/ 2ctention nd SuPUc'rt s} i5 ut711ion
Talent Rect uttment QuaGCY yt. n?Illion
?alent Retention and Commit X12 mtltion
t ToCal Cost far EDGE4 Program
erson economic development team supp
orts its two brands — Wake
The Chamber's eight -p
CED and Raleigh Economic Development 17 WCED is
ment (W )
County Economic Development
ment agency for the County, responsible for assisting
expansion plans, and [marketing) Wake County as one of
described as lead economic devel
op es the
„1s
"businesses with their relocation and exp supports new and existing firms
the best places for business in the Uent Program, vvhAhslupp ally, the Chamber man
City of Raleigh Economic Develop inhe City. 19
interested in operating
EDGE4 Celebration Marks Great Success" (2009), National Community Development
16 " df raleigh_edge4_071709.pd
Services. http: / /YVww•ncdsinc.neig / Commerce.
17 "Staff Directory." Greater Raleigh Chamber of
http: / /`Nw`N raleighchamber.org/
about— staff.aspx ent. http://w`Nw.raleigh-
18 "Who We Are" (2009), Wake County Economic De velopm a e about -
wake.org /page /who -we -are ment, http: / /`Nww"aleigh4u.com /p g /
19 "About Us" (2009), Raleigh Economic Develop
9
us
CONSIOERiNG CHANGE Durham and Wake counties illustrate
ment structures in Chat co omit development function. These
As the economic developto structure a county
there is no one best way ortance of county commitment to economic
demonstrate the imp e County is
counties do, however, regardless of its structure. If orange one of two
development and support of the function, reg act, it may wish to explore
interested n increasing the OCEDCIs activity and imThese approaches differ in strategy but
primary change Paths — cultural or structural change. orange County Board of
begin at the same point, with a new commitment from the
Commissioners to support economic development.
Cultural Change this change
roach to change would involve incremental improvements
bus nesstsl to ke Ye Ois c
A cultural app en Orange County
empower the OCEDC to lead economic
structure. Its end result would be to op in developing a comprehensive,
would begin with the Board of Commissioners emp call on the County
development. From here, the OCEDC could lead the
Such county plan would likely
policy- driven economic development strategic p in economic development. One such
to clearly e shell building in one of its economic Department
demonstrate its new commitment to encourag
method might involve the County constructing clearly demonstrate to the North Carolina ants to bring in
development districts. This move . ngle Regional Partnership that the County
and equally importantly, this move would give prospects a chance
of Commerce and the Research Triang
prospective new employers, County.
to see themselves in orange
Even an incremental approach to
change will require a great deaf of 1. Establishing a sense of urgency
and support to gain 2. Creating the guiding coalition
leadership
momentum. OCEDC staff and County 3, Developing a vision and strategy
q. Communicating the change vision
Commissioners process m y benefitdfrom leading
eald'iing for broad -based action
this process may 5. Empowering employees
Leading Change. in this 1995 text,
e management guru John Kotter 6. Generating short -term wins
Chang smart, gains and producing more change
s for leading 7. consolidating g
details eight step r argues
sustainable chang e Kottecreating a ht -Stage Change Process
effective change begins by
sense of urgency.
20 The current Figure 7: Knitter's Eight-Stage
economic environment, gap between s failure to attract new businesses a
e, One could argue that if Orange County fails to diversify its
commercial and residential tax bases, and the County falls is to at the
suggest an urgent need for change. education and other County priorities ent need for
tax base, it will be unable
otential for developing a strong case for the urgent
The p ntinue funding identify and discuss the challenges
levels it has previously. to stand up,
change is clear. It just takes one leader willing
ading Change. Boston: Harvard Business School Press, pp• 21•
20 Kotter, John P. (1996)• Le
10
opportunities for its future economic growth to get the change process started n From
and to continue to drive change•
there, the commitment of local leaders will be necessary
Structural Change roach that could be used alongside the Orange Coun incremental
Structural change is a more drastic app
roach calls for the restructuring or disbanding the OCEDC
approach or in lieu of it. This app public-private partnership EDC
Economic Development Commission as a
and contracting with acommunity -based organization to coordinate economic development.
ment and staying directly involved
supporting economic develop partnership, likely in the form
If the County is committed to supp anized as a public- private p signal that the
in the process, the EDC could be reorganized oration. This would create e Count. Such an entity
of a 501(c)3 Economic Development Corp ment in orange
economic develop tt pursuing a policy- driven
newly formed EDC would be leading b romp Y p
careful attention to governance and ensuring a
could leverage lessons learned in Chatham County, Y t to lead the
ment strategic plan, paying osition the partnership
economic develop strategic plan would p research to guide consideration of
diverse funding base. A strong with strong partnership
County's economic development discussion, political appeals. From here, the
controversial issues, rather than emotional external p
b focusing on strategic
Would be able to increase both internaos t ons marketing Y
priorities and common interests, not p and establish the urgent need for
should the County struggle to overcome complacency
options that could create greater returns on economic
e it may path of Durham and Wake
change, want to consider other op
development investment. One such option might be to follow the ec
counties in contracting with the local Chamber of Co wo td be able to educe its funding l of
run, the County while increasing funding
initiatives and activities. In the long ment,
expenses associated with economic des and /or other special projects.
operational exp s investment in
available for necessary infrastructure imp
Additionally, this option would enable the sector uppoort the County
economic development with additional private
the statement was made
This
z� the preliminary presentations associated with this project, roach to
During e but do not have the will to follow through.
that people see the urgent need change e but provide justification foand establishing g a sense
suggests an issue with come complacency
Bugg 35 -48, for more on battling
change. Refer to Kotter, pp
of urgency. 11
without seriously considering
its economic development
CONCLUSION has gone too tong year to fund an organsheiCounty
Orange County more than $400,000 each y
objectives.. It is spending Without decisive action,
goals and obj ort on its success• see limited economic
issues,
has no viable metrics or methods to re hbors in diversifying its tax base. At
will likely continue to talk around economic development
longer sufficient to support quality County
development outcof na esidential further
taxe care no gig
some point, it may find it is too far behind on infrastructure and amenities
services, and at that point, it will likely
the new jobs and capital investment needed to bolster its non-residential tax o ask the
to attract uo. it is time for the County
rnent? Is it willing to find the resources
Orange County can no longer continue with the status q empower
the OCEDC to lead
driven strategic plan? Is it wilting to
tough questions. is it serious about economic deve op
necessary to invest in a policy
development? Is it willing to hold OCEDC accountable for results • s Board of
economic develop uncertain, Orange County'
off economic development responsibilities
if the answer to any of these questions is even remotely
Commissioners needs to seriously consider handing
to a private entity with the capacity to drive change.
12
part F — US 70 /Cornelius Street Corridor: Market Study and
Development Opportunities Report, Aaron N beusl' ine, Dana Archer
Rosenthal, Jamaal Green, and Amanda Camp
1531Page_
US 701Corneliuso�un'i ies corridor:
Report
Market Study and Development Opp
Submitted to:
Margaret Hauth' Planning Director
Town of Hillsborough
Prepared by:
Aaron Nousaine
Dana Archer- Rosenthal
Jamaal Green
Amanda Campbell
Department of City and Regional Planning
PLAN 773
December 2009
THE UNIVERSITY
pf NORTH CAROLINA
at CHAPEL HILL
content
Table of ..............................0
List of Figures and Tables ............................................................
............... ...............................
iii
..............................
.............
................. 1
ExecutiveSummary
. . .................................. ...............
...
Introduction ..... ...........................
" "'
Area and Study Area Definitions ....................
.........,6
Project
Conditions Assessment .............................. ...............................
Existing
and Economic Trends ...................................................... ...............................
.... 22
Demographic
.22
Existing Land Uses ....................... .....
Real Estate Market Conditions .• .................... ................................
...........................25
Current
Assets and Opportunities .....................................
.............................25
Health Services
............................... 26
.................................................
What is an Asset Map? .............................................................................
............................... 28
..................
Identified Assets ...................
...............................
29
..................
Occupational Concentrations ............................
33
Models for Health Care Delivery ...........................
...................
Workforce Development Potential .................... 4..............
................35
...
Development Opportunities ...........................
35
Retail
...............................
Retail Leakage(Ittjection Analysis ...........................................................
Retail Development ...
36
36
Additional Supportable ....... ........ ...............................
..•.•••••••••° °"
..............6................
Projec tedFutueRetailDemand
Development Impacts ...............................
49
...............................
Business and Employment
53
Sales Tax Revenue Generation ..............................................................
Development opportunities .................................... ...............................
Planned and Proposed Developments .............................. ...............................
...............................
.................. .,.. 53
................
Development Recotmnendations .......................................................
............................... 56
Conclusion....................... ...............................
List Of Figures and Table
rig ....... ..............................9
ure l: US 700corne1jus Street corridor project
Area Radii ............................. ..............................5 Stre Figure 2.
................
1
Table 1: Population and Household Treads, 2000 and 20
I1
Table 2: Age Distld loion, 2000 and 2o0, 199•••••nd 20 ................12
...............
Table 3: HouseholdhtcomeDisutbutimr, 1999and2009 ••••••••�•�••••"" U
2000 and 2009 . ............................... ....14
..........
Table 4: Educational Attainment, 2000 and 2009 ................... .
Table 5: Households by RaceSthnicit) , 15
Stock by Year Built, 2000 and 2009........... "........
Table 5: con'tTable 6: Housing 16
Table 6: Housing stock by Year Built, 2000 and 2009..•.••••••• "
19
Table 7: Housing Stock Characteristics, 2000 and 2009 ....... .......... 21
....... ....... ..........
to 000 projections, 2004 and 2014 ..................'. 21
Table 8: Labor Force Trends, 2000 to 200 .........................
Table 9: Occupational Emp y and 2029 ................................. ............................... 28
Table 10: Population Projections, 2000, 2009,
Figure 3: Hillsborough Health Service Provider Locations ..........................
Table 11: Health Professionals Per 10,000 Residents, 2009 ............................ ...........................:...
organizations, 2009 ....................... ............................... 34
Table 12: Triangle Area Health Provider tate and Nation, 2009 -.•••••• °•• •• °"'"" ........37
occupational Wages,
Table 13: Health Care
................... ...............................
e 2009 ...................... 3
Table 14: Existing Retail Leakage, ......... 40
Table 15: Existing Additional Supportable Retail Square 2009 ..... .
toll, 2007 ..............................
Table 16: Projected Increase in Retail Demand, 201 —
Table 17: Nortli Carolina Retail Employment and payroll
s and Employment Development Impacts, Two -Mile Radius,
Table 18: Estimated Business and Job Development Impacts, Iwo -Mile RadiuS'2009— ..••••••••°
Table 19: Projected Busmen .50
........... ...............................
2010-2029 .................... 6.... . .
Table 20: Estimated Sales Tax Revemte Generation, 2009 ......................... ...............................
Table 21: Estimated Sales Tax Revenue Generation 202orci •••••• Projects,
Table 22: Planned and proposed Residential and Commercial Projects, December 2009 ..............
••• °""5
xecutiVe
Slarr►rslary
provide further analysis of the conditions identified in the U
was designed to P the Town of Hillsborough in 2007. The explicit
This project re ared by potential opportunities and constraints
70 /Cornelius Street Corridor Plan Prepare
goal of this work is to develop e oettd understanding of the
to future development along ortunities identified in
into consideration the issues and ooif the demographic and
Using a variety of methods, and taking th analysis
the 2007 report , the project team has conducted an in-depth all
economic trends affecting the Cornelius Street Corridor. An assessment of health care services m
otential development to Hillsborough's existing health
Hillsborough, and discussion of two different service deliver} models, attempts to address and
identified community need while relating p
Finally, the report outlines the ar'ea's retail development potential,
cafe service industry. acts of retail development.
potential employment and sales tax imp
hic and economic trends, existing land
Existing Conditions Assessment Analysis IS
This section provides detailed information onadalftl gl state of tile local economy.
dated demographic data purchased fro
Claritas, Inc., and
uses, current real estate market conditions,
public sources such as the > mplOymenI Seen, Commission of North Carolina
performed using 2000 Census data, up
data from other p and Management.
and tine Office of State Budge' geographic
h For
For data analysis purposes, the study area was defined as tine 2-mile radius from the r
70/Cornelius ea Street Corridor Plan. In some
for five- and ten -mile races areas were also analyzed. This
center of the CorneuStreet corridor, This area includes most of the town of Hills y7e
the sake of comparison,
methodology corresponds with the one usedevelre US 'JO
cases, data was only available at the county
Demographic and Economic Trends
elation of the two -mile study
When compared to the five -mile and ten -mile radius areas, the pop
area exhibits the following qualities:
• An older population — A growing Pr °Portion of adults age 65 and older.
• Lower median household income — A declining median household income that's $8,000-
29 percent of residents identify as African- Amefican, compared to
16,000 less than in the wider areas.
More racial diversity — P respectively-
ercent of residents age 25 and over have a
19 and 14 percent in the five- and ten -mile redo,
Lower levels of educational le attainment — 53 P
high school degree
using both a low and a high
ro ectious for the year 202s were prepared, roximately 140 people)
Population growth Projections loss (app' toroth for a
estimate model. The low - growth model predicts slight population
in the two -mile study area, while the high - growth model predicts moderate annual g'
total increase of approximately 2,700 people.
ion of Alamance, Durham, and Orange Counties is concentrated
Employment in the tri- county region
Dods- roducing
growth through 2014 estimates an addition
mployment in education
in service industries, with high e and health services, g
industries, and in Projected most employment
of roughly 56,000 jobs. Growth is most pronounced in the education and health services,
and general service sectors.
professional and business services,
Existing
Land Uses large lots, by
The US 70 /Cornelius oxematelyta2tbusinesseseincldird gtagiandfullof retailtatgid personal service
interspersed with app' opportunities for
provide significant opp
establishments and a motel. Along this section of US 70 there are also many vacant an
underutilized parcels that, if rezoned and consolidated, could p
additional east of tlee CorneldustSt Street co ridor, d velop ment patter sr a esbasically t0itetsameatevith on US
rcial directly
slightly greater concentrations of commercial and eta space.
Current Real Estate Market Conditions
ion. Given the economic recession, it is not
The retail, office and indushrial( flex sectors of the local commercial real estate market were
compared to those of the Triangle reg percent in
analyzed and comp
hl ice and i with vacancy rates for the county and Triangle region-
Hillsborough. surprising to find rates of office and industrial vacancy in the range of 15 to P
This roughly
per square foot, per year: significantly lower
averages of $22.06 and $20.55 per square foot, pet' }'ear, respectively.
Lease rates for office space run between $10 and $1 p q
than the County and regional
ests some comparative advantage for
On the other hand, lease rates for in and flex space were in the same range as the Triangle,
and slightly higher than the county as whole. This sugg
ht industrial
Pei- square foot per year, compared to county and Triangle averages
Hillsborough in this area. Local real estate brokers estimated lease rates for hg per square foot
warehouse at around $4 or $5 p q tive flex space fetches between $8 and $9 p q
of $3.50 and $4.21, respectively. Adaptive
per year in Hillsborough, compared to $7.40 in the county, and $8.53 in the Tr iangle.
g rites
The retail real estate market in Hillsborough has remained fairly strong. Vacancy i❑ the historic
per square foot, p year,
downto Leasee ates for retlail space range between $18 and $22 ptionq, and leasm p
have increased.
up from $14 per square foot, per year, several year's ago.
iv
There is a significant amount of developable land available for purchase in and around
h side Hillsborough. The availability
challenge development land in
efforts i n�the Cornelius Street area district
ince this
downtown areas may pose p
area has historically been less desirable to private sector development. The Water
conomr
Development District located to the east of the study area, on US 70, may also provide options for
developers interested in commercial and office development.
Health Services Asset Map towards
understanding Hillsborough's all
health services sector, a map tofgts health asset was analysis step
u support providers. This analysis identified
on an inventory that found 81 health care service and supp P
psychiatry and psychology. A number of health
that Hillsborough's health care assets are most concentrated in the areas of dentistry, family an
general practice, senior
and/or nursing care, and psy Y private
care providers within the Cornelius Street area were also identified, including Kerr Drug, p'
gY p count health and
doctor's offices, and the Cornelius
Rest Home. Unique assets in Hillsborough include Durham Tec s
Health Technologies programs, a number of medical tech
corn arues, Y
social service offices, and a number of home health care service pr vider co Through all ation on
with Brian Toomey, CEO of Piedmont Health Services, the project
two models for health service provision.
Community Health Centers
Community health center's are federally funded health care providers with a mandate to provide
comprehensive medical, dental support
a cr'tical�vay of ex populations.
tending health care services and
Community health centers are judg ed to
Medicare and Medicaid coverage to uninsured populations. Meatieutssof community health care
citizens and women are disproportionately represented as p
centers, as are the uninsured.
Progranv ofAll Inclusive Care for the Elderly (PACE)
Piedmont Health Services also operates a senior
E). PACE center,
s a nationally- ecog li ed ni model del of care for
of All - Inclusive care for the Elderly (PACE).
individuals deemed eligible for nursing care but able to live independently with PACE services-
individuals
day care b }enter 1-5 cam d team e k medical, Tansportat ion is i sp provided, so that seniors are nable to
the
remain within their community as they age.
Workforce Development Potential
One advantage of a focus on health care services as an anchoring use for Cornelius Street is the
V
potential job cOpportunities Hillsborough, could
Provides tnultiplle Durham career and c sciltheir Health Technologies
e created. which has a p than $26,000,
career cluster that may provide potential avenues for employment with existing and future loco
average animal wages higher
retail and many other service
health service providers. These career tracks all pay
which is an attractive wage when compared to those prodded by
sectorjobs.
Retail Leakage/Injection Analysis
Economsts define "leakage" as the amount of money local area residents spend outside of their
Econo it By contrast, "injection" is the amount of money residents from outside the area are
i
spending in file local
early $t17 million dollars. aThe largest areas of leakage are Automob' le and iOther
total leakage e and largest areas
Stations with three million dollar and
Vehicle Dealers, with $6.7 million in leakage,
leakage. Other areas of significant loss are Clothing and Clothing Accessories, personal Care Stores, and Electronics and App liance Stores. The five -mile radius exhibits a total
leakage of roughly $100 million. Important categories with leakage include General Merchandise
e and Drinking Places with almost $14
Stores with nearly $19 raillion leakage, and Foodservic
million in leakage, among
Additional Supportable Retail Development supportable retail development, the
square foot data collected by the Urban Land Btstitute
To translate retail sales figures into estimates of at d ata supp percent adjustment for non-retail
through a national survey of retail est ablishments- project team utilized average sales per sq
er services) and a ten percent adjustment to reflect healthy
ablis Including a 1 p square feet
establishments (i.e. business and p
retail vacancy levels, the two -mile radius could potentially absorb an estimated 23,00 sq
square feet in the food
of retail space at current tlin the, two- diu'le nadir s exists fox an additional Of 47,000 sglysis identified that
sufficient demand store. The
Potential of over 150,000 square feet.
and beverage stores category, sufficient to accommodate a traditionally -size
five mile radius, by comparison, exhibits all absorption p
Projected Future Retail Demand
h 2029 within
Based on projected population growth, the estimated increase in retail demand through
the rivo -mile radius projected retail development ca aoit$ million.
ithin the t Translating e radius is between 226,000
feet, the total qua
capacity
and 333,000 square feet. The retail categories projected to experience the largest growth include
arden equipment stores category shows an
general merchandise stores and food and beverage stoles, each with between $12 million and I
million in retail sales. The building materials and category g early
feet oftdevelopmemtLlion to over $14 million in retail sales, and between
estimated increase in dernand of
23,000 and 34,000 square
vi
Business and Employment Development Impacts
Based on national average gross leasable area, and state average employment per establishment, the
lure
projected retail demand. Using these figures, th m
e two -ile radius
of existing retail leakage and p'
project team estimated the total mmmber of businesses and rob s that could be created tong t cap
ro l
Hance
could potentially support up to five new retail establishments and 51 new jobs. These impacts a
applying the average annual wages this potential
concentrated potentially
the sectors of Clothing and Clothing Accessories, Electronics and pp
Stores, and Health and personal Care Stores. By
job creation could provide around one suggest million
otential ito wag c eate between 745nandtneaily 1 100j�new
and job development projections sugg P
jobs through 2029 in
obs n the mile radius. radius This in the same period. en 152 to 195 new businesses s to
and 2,800 to 3,600 j
Potential Sales Tax Revenue Generation
The total additional sales tax generation potential of retail development in the two-mile radius,
based on existing 2009 r potential sales leakage, revenues m tely utillion,lariid t By
e too-miilerradius over sales tax
five i
$46 million. Based on projected 2029 retail demand estimates, the total sales tax that could e
generated final future
and b tutee t $26enillion and $33 million in five mi$e area-
Development per year in the
two -iml
Development opportunities
Planned and Proposed Developments
There are currently 10 new developments approved si under construction t the Town o
Hillsborough. Eight of the approved projects include residential units, with a total of nearly include
square feet of
single-family and pacelwith'attotal units, and over '
163,000 square of retail units.
nd 414`0er 7gcts squ e
commercial
office space. The largest square feet of office spaocenandstheatov r one m includes nsqua e� foot square
feet of retail, 364,000
Hospital complex.
Development Recommendations fr a roxing and
Based on the project team's estimates of retail development potential, as derived from existing an
comparison,
future projected retail leakage, the two -mile radius shows the potential to support P o population
23,000 square feet of new retail space, in the short-run. The five -mile radius, by P
square feet and
shows development potential of over 250,000 square feet. Looking farther ahead using p p
square feet of additional retail space. The five -mile radius, by comparison, reports a
based demand projections, the two -mile radius could add between 226,00 sq
333,0000 million square feet of retail space
projected capacity of between 858,000 sq uare feet and over one
Vii
through 2029. The Town of Hillsborough has already approved over 163,000 square feet of
commercial development. This equals approximately seven times estimated existing demand
capacity of the hvo -mile radius, based on 2009 leakages. By contrast, the 250,000 square feet of
development potential in the five -mile radius is roughly 1.5 times the amount of space provided by
four commercial projects currently under construction in Hillsborough.
Conclusion
In conclusion, retail development is a strong possibility for the Cornelius Street Corridor, based on
the retail leakage analysis. Health care, or some other institutional use, could serve as a leading
anchor for the corridor and encourage the development of retail or other supporting services. In the
realm of health care, there are unique models that Hillsborough could explore that would meet the
specific needs of its population and establish Hillsborough as an innovator in the provision of
health care services.
More broadly, future development of the Cornelius Street Corridor should take into consideration
the following key trends and conditions, highlighted throughout this report:
• An aging population;
A desire for medical services in the study area, as expressed by iota] residents;
• • The presence of considerable health assets, including training opportunities;
• The mullet market for consumer expenditure in Hillsborough and orange County, as
proven by the retail leakage analysis; and
• A local real estate market that is, generally, weaker than or secondary to, the market in the
county and the region.
In concert with the Town's expressed vision of reconnecting the neighborhoods north of U.S. 70
with those to the south, and to Hillsborough's blooming downtown district, tine development
strategy for Cornelius Street should strive to provide services to neighborhoods located on both
sides of tine highway ; attract and retain retail dollars from within and outside tine county; create
jobs that provide decent wages, conditions and opportunities for workers from Hillsborough; and
enhance the physical appearance, environment and current uses of the corridor. By doing so,
development can hope to achieve the sustainability that economic development strives for.
Viii
IntrodUcti0 rl
The US 70 /Corn up of Street corridor revitalization of the Hillsborough s nlBoa do 2006
e OrangetCounty tBo od
a task force
Of Commissioners, the Orange Count), Economic Development Commission, the local business
goal of tine redevelopment effort is
community, and the town's citizens. The result of this collaboration was the U.S. 70 /Cornelius
Street Corridor Strategic plan, published in 2007. The primary g
St reeomect the neighborhoods improvements to the and economic hie development-
downtown, Hillsborough's historic
downtown,tlnoug P Y
This project was designed to provide further analysis of the conditions identified in the U.S.
70 /Cornelius Street Coo'tunit ePlat'
a dtn constraints to The
toexplicit
futu e neighborhood ooddevelop better
e vingndoe' ntner i l
of the potential opportunities rtp
corridor. Our hope this report u a resou
ug tile developm at() econoicdelopme nt strat gyfor ti be used
70Co rido,and that the
formation a holistic
methods used in our analysis can be applied for future planning efforts, jobs and
Data and analysis presented throughout this report can provide justification for bringing gal anchor
amenities to an area that is undeserved. i in n addition,
ily, some of resent the benefits this would have for
for the U.S. 70 corridor and explore, p'
integrated rwith prior findings andtare n linenw ithtexpressed needs incthe community t The strategies are
following criteria for proposed development for Cornelius Street were developed based on the
ideas that have emerged
government, and 14illsborougll residents;
estate brokers; andtthrough select cent with town and county
quantitative oundig Cornelius St Street. They demographics
tin an understanding tof what s the
hat is
sun given existing conditions.
desired, and what is possible for Cornelius Street, g
should be evaluated based on its ability to:
potential new development and redevelopment
1)
Street. eThe residential neighborhoods
ghbohoods that surround Cornelius Street are unde sexed by
lic and private transportation
commercial opportunities. Limited access to pubpedestrians froth both
need for retail and service industries that can be easily accessed by p
neighborhoods, as well as an opportunity for greater incorporation of the north -side
residents into the commercial activity in town-
section.
"the particular methods used for each portion of the analysis are described at the beginning of each
1
2) Attract and retain retail dollars from within and outside the county. Orange County
and its municipalities are engaged in an ongoing effort to balance their tax bases, as the
majority of th currently e tax burden is cuently borne by homeowners. Increasi g retail and
n
commercial development is imperative in order to achieve this balance, much of which
results from the leakage of consumer dollars to neighboring counties. Development of the
tax - exempt UNC hospital in Hillsborough's Waterstone Economic Development District,
on land previously zoned for commercial development, represents forgone future sales and
business taxes. Commercial or office development on Cornelius Street can capture some of
this displaced commercial use. Further, Cornelius Street serves
and Dnrhann11Shategicte
between points west (e.g. Mebane and Ala a s ill tile tot) and along the longer c 70
commercial development can fill existing g p
corridor, and by doing so, prevent further leakage and attract more spending from
commuters passing through the town.
3) Create jobs that provide decent wages, conditions and opportunities for workers from
Hillsborough. In a town and county where quality of life issues played allo significant jobs
role in economic development goals to date, the issue of job quality is cri
are created equal: some jobs and industries, despite requiring relatively low- levels of
education, can provide opportunities for advancement, while others offer d quality jobs
for growth. Given the challenges of public and private transportation, good quality l
that are accessible to residents of the neighborhood's adjoining Cornelius Street would be a
positive addition to the corridor and help combat the potential negative effects of
development (e.g. exclusion, gentrification).
4) f;nhance the physical appearance, environment, and current uses of the corridor.
Cornelius Street serves as a gateway to Hillsborough. It is an urban toad, but its current
conditions give it a more rural feeling. Improved lighting, signage and pedestrian pathways
al improvements that could make the corridor look and feel
are part of a parcel of physic
more incorporated with the rest of the town, and improve safety for pedestrians. New and
redeveloped sites should be of a scale that is fitting for the surrounding neighborhoods.
Achieving a mix of uses, either throughout the corridor or within individual buildings, can
further enhance the image and feeling of the corridor by bringing more activity to the area
and spreading the activity over a greater part of the day.
Project Area and Study Area Definitions
Hillsborough's Cornelius Street commercial corridor stretches approxitmately 1.2 miles, from
Lakeshore Drive to the intersection of US 70 with NC -86. US 70 is a major east -to -west route that
connects Durham with Mebane and other cities to the west, carrying over 8,400 vehicles per day as
74
of 2004: The majority of parcels of land along US 70 are either unoccupied or underutilized,
though there is some residential and commercial development. Within this section of the highway
there are roughly 12 active businesses. For details regarding the geographic extent of the project
area, please refer to Figure 1 below.
For purposes of analyzing relevant demographic data, and to facilitate the identification of potential
market opportunities, the project team used Geographic Information Systems (GIS) to define three
study areas, in addition to the project area. These were created by drawing three circles with a two -
mile, five -mile, and ten -mile radius. The center point of each was located at the intersection of
Hills Street and Cornelius Street. As can be seen in Figure 2, the two -mile radius roughly
encompasses the portion of Hillsborough located north of Highway 85. The five -mile radius, by
comparison, includes the southern portions of Hillsborough, and many of the rural properties that
immediately surround the town. Lastly, the ten -mile radius also includes Mebane, portions of
Woodlawn, Carrboro, Chapel Hill, and some of Durham's western suburban neighborhoods.
US 70 /Cornelius Street Task Force. (2007). U.S. 70 Cornelius Street Corridor Strategic Plan.
3
Cim irP I . U.S 701Cornelius Street Corridor
Sources: U.S. 70 /comelius Street Strategic Flan, u "
.. -, o. i v; 70/Cornelius
Street Corridor
Legend
® Corridor--Anchor N
2_Mile Buffer
5 -Mile Buffer �.
10 -Mile Buffer�1
VIA Census Designated Place
Boundary
Miles
10
2.5 5
0
County
S. Census Buearu, 2009; ESRI, 2009; DCRP, PLAN 773, 2009
Sources: U. .
Gonditiort
s Assessment Existing demographic and economic
report provides detailed infonnatiotr on existing The intent of this analysis
This section of the xep P °rtmrities.
t cc market strengths, challenges and opp
trends, land uses, real estate market conditions, and the local
economy.
is to facilitate identification of Potential
Demographic and Economic Trends private data vendor, the North
The demographic and economic data reported below were
,eclatitasea from number of both primary
and
and secondary data sources including
Carolina Employment Security Commission; and the North Carolina Office of State Budget
Management*
population and Household Trends
population Growth Trends h as represented by the two -mile radius area,
As shown in Table 1, the population of Hillsborough,
093 beriveen 2000 and 2009 —a I Percent decrease. This is in contrast o
declined from 6,156 to 6, ercent, in the five -mile radius, and an increase of
a total population increase of 987 residents, or 6 p
over 9,000 residents, or 13 percent, in the ten -mile radius.
axed to the five- and ten -
Household Growth Trends hl the same between
Household growth is also starkly different ill the two-11 radius comp
grew by around 7
mile areas. The number of households i❑ the rivo -mile radius stayed we b about 13
rowte increases even more significantly in the ten -mile radius, y
life and 2009. The number of households in the five -mile radius, however,
percent. The rate of g'
percent.
Household Size period between the years 2000 and 2009 stayed
Household size in the two larger ring areas in the p household dining the
persons per household. The riv ° -tn pet. analysis revealed that
about the same at 2.5 P from 2.5 to 2.4 persons
Hillsborough household size declined slightly
same period.
area remained roughly the same
Household Type used of 35 percent family
Similarly, the proportion of family households within each ring ercent,
year period. In 2009 the rivo -mile radius was comp' percent and 36 p
during the nine y P
households• The five- and ten mile radii show similar figures with 3
respectively.
0
led, there are
Household Tenure axed to the five- or ten -mile radii. Table 1
While more than h�o thirds of homes in the rivo mile radius are owner -occu
proportionately more renters than home owners comp of 69 ercent owners >e cent owner five -mile radius consists
show's that the two-au he ten-all radius consists of 76 p
of 74 percent owners,
which prove to be rather
Age Distribution in t C. median age is rising from around 37-
Table 2 shows the age distribution of residents in the tlu'ee . geographies,
that are aging g � percent. The
42 ears of age). More speciftcally, the two mile •adios exhibits an
similar. All three areas have Populations e coup, rising front 14 to 16 p
3g years of age to between 41 Y
ercent to 13 percent in both five - milee and
for
increasing percentage of residents in the on 65 and over I r older than average new from around.11 P In is slightly
share of population 65 and over g no ulation of Hillsboroug
Ten -mile radii. This suggests that the 1 P
the area. the 2009
income category. Based on this data,
000, compared to $55,000 in the
Household Income Distribution
Table 3 reports the distribution of households by r 1, for inflation to 2009
nnedian household income in the two-mile radius was about $a area Adjusted
radius, and $63,000 in the ten -mile radius. "This shows a clear trend of lower' average
five -mile h as compared to the surrounding
eo ra hies between 199 e cent 0 f- 111 the
incomes near Hillsboroug 6 -cent, as compared to 1 p
dollars, the median household incomes declined in all g g
two-mile radius the median income declined by P
and 5 percent in the ten -tulle radius.
Educational Attainment the hvo -tulle radius exhibits lower rates of educational
three percent of residents within tivo led to
Table 4 shows that similar to other trends, 11 school diploma or less. This is opposed population
attamment than the five- and ling tota l tg ercent of the p P 'le areas.
the study corridor have schooling Q bachelor's or higher degree. This is fairly
it percent in the five -mile and 37 percent in the ter bachelor's
radius. Yet, 2 P nee. However' in
percent of residents have a bachelor's degree Educational
age per cent
and over' within two miles have obtain a
similar to the five -mile radius where 26 P be influence
by the presence of the University of
the ten -mile radius 38 percent of residents have earned at least a bachelor's eg'
attaument figures for the ten mile radius may
Chapel Hi11
North Carolina at .
her Proportion of residents characterized as hfownnn Table 5.
Household Race and l there is a hig P around one
In the two -mile axes, lov*,
onion of residents who identify as Hispanic or Latino is veTY
compared to
those identified as White than in the five - and ten -mi e axe
overall, tine prop
7
ro ortion of African - Americans
which
percent. The share of residents ercent in the rno- -mile acliustl Th PI etP Five- and ten miletradii is also
very low, only around three p as African - American
in the two mile area, around 29 percent, is slightly higher
residents identifying
ercent respectively. The Percentage onding decrease . the White
have 19 and 14 p h with a corresp
rose 2% from 2000 to 2009 in Hillsboroug ,
population.
older in and around the study area. 54 percent of
Housing Age 29 ercent in the five -mile,
Housing age, shown in Table 6, is relatively
housing units were built prior to 1960 in the two- milestock in jet- hvo -mile radius was built of in
and 21 percent in the ten -mile. 18 percent of housing
The large proportion of older housingk in
1940 and only 10 percent Nvas built since 1999• policy of historic preservation that prioritizes
Hillsborough may 'nr pail reflect the "Down's p Y
rehabilitation of historic structures.
Housing
Stock Characteristics h the two-mile area contains a
As regards the type 76 ercent) than the five- and ten mile rings•
es of housing available in and around Hil s oro
higher majority of single family detached housing ( P
Another 16 p duplex and apartment units.
ercent of houshrg units within two -miles of the corridor ar'e mobile home mots while
the remainder consists mostly of multi- family dup
SfafUS h in Hillsborough -12 Percent, compared 11
Housing Vacancy rates in all three regions
Vacancy rates, shown in Table 7, are a little high
ercent in the ten -mile area. Vacanrate of 6 -8% is considered
Percentage
points from 2000 to 2009. A vacancy
percent in the five -mile radius and p
increased by a few p
normal for a healthy market.
m
Change 2000 200 6%
Five Mile Radius (a) @) _ 1 943 18,930 0
Two
Mile Mile Radius 26 g 2000 200 Population
6,975
7,441 7
population
2,440 0% Households 25
2,431 2.5
Households Average Household Size
2.4
Average Household Size 2'S Household Type 38% 38%
HH with Children 62% 62%
Household Type 35% 35% HH without Children
HH with Children 650% 65%
HH without Children Tenure 74/ 74%
Owner 26% 26%
Tenure 680/6 69% Renter
Owner 31% 31
Renter
percent
Change
Ten Mile Radius (a)(b) 0000 200 200' 1309
71,662 BO,751
population 13%
28,380 32,102
Households
Average Household Size 2.5
2.5
Household Type 36% 37%
HH with Children 6400 63%
HH without Children
Tenure 76% 76070
owner 240% 24%
Renter Figure 1 {or
Point See Fig
Notes:
, Census block group
(a) Radii are defined using the intersection of Hill Street and Cornelius
and ten milerad fi represent aggregate geographic
details. oiled by Claritas for the two, five, apportioned based a the l
ate population and
(b) Demographic figures rep Partially within the defined boundaries are
that are p o ulation and household
level data. Data for block groups
centroid of the affected block group. Fore esfimates provide a reasonable indical'on of thetp P rigging
however, ra hic characteristics.
household counts that result: as well as of general growth trends and demog p
counts in the affected areas,
Sources: Claritas, 2009; DCRp, pIAN 773.2009.
Median Age
Mile Radius (a)(b)
Five
Mile Radius
(a)(b)
Ten
2000
Two
2009 (Est.)
2000
r
of Total
Number
of Total
NuuMb
of Total
Number
1,543
1,354
22
-�
Age Range
1,515
25%
9%
Under 18
454
7%
521
10%
18 -24
808
13%
631
13%
26-34
1,005
16%
777
16%
35-44
946
15%
945
915
15%
45-54
577
9%
947
16%
55 -64
852
14%
6,090
100%
65 and65 and o
6,67
100%
Total population (c)
Median Age
Mile Radius (a)(b)
Five
2009 (Est.)
Ten
2000
2009
2000
r
of Total
Number
Of Total
'4143C
23%
21%
1,543
8%
1,274
7%
1,993
11%
0
2,680
0
3,201
1 8%
3,145
17 %
2,791
160/6
2,678
14%
1,577
9
2,460
13%
1,902
11 0
12,150
100%
17,937
46-54
6,492
Median Ago Figure 1
Notes:
the intersection of Hill Street and Cornelius Street as the center point. See
(a) Radii are defined using re ated Census
for details. five, and ten mile radii represent s 3 aggregated
(b) Demographic figures reported by Caritas for the hvo,
s that are partially within the defined boundaries
spsome variation
block group group, For different data variables,
rou level data. Data for block group
based on the geographic however, the estimates provide a reasonable
ai cn and of the affected block 9 p' as well as of general growth trends and
in the aggregate population and household counts that result;
indication of the population and household counts in the affected areas,
demographic characteristics.
(c) Sums may not equal those reported in Table 1 due to founding.
Sources: Clarilas, 2009; DCRP, PLAN 773, 2009.
Mile Radius (a)(b)
Ten
2009
2000
of Total
Number
of Total
Nun
18,712
23
Age Rang��
17,783
25%
8 %
Under 18
70%
6,556
11%
18 -24
9,768
14%
003
25 -34
12,832
18%
10,845
18%
35-44
12,150
17%
14,235
46-54
6,492
9%
11,397
14%
55 - 64
7,905
11%
1._- --
80,747
100%
65 and65 and o
(c)
71,658
1000"
Total Population
Median Ago Figure 1
Notes:
the intersection of Hill Street and Cornelius Street as the center point. See
(a) Radii are defined using re ated Census
for details. five, and ten mile radii represent s 3 aggregated
(b) Demographic figures reported by Caritas for the hvo,
s that are partially within the defined boundaries
spsome variation
block group group, For different data variables,
rou level data. Data for block group
based on the geographic however, the estimates provide a reasonable
ai cn and of the affected block 9 p' as well as of general growth trends and
in the aggregate population and household counts that result;
indication of the population and household counts in the affected areas,
demographic characteristics.
(c) Sums may not equal those reported in Table 1 due to founding.
Sources: Clarilas, 2009; DCRP, PLAN 773, 2009.
Income Range
Less than
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49.999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $149,999
$150,000 or More
Total Households
Unadjusted Median
Household Income
Mile Radius (a)(b)
Two M
2009 (Est.)
1999
of Total N
Number 1
of Total
Number o
16% 3
11%
384 1
15%
320 1
13%
374 1
13% 2
264
311 1
21 �0 2
454 1
19%
503 4
17 °/ 5
522 1
21%
411 2
8 °� 2
10%
200 8
6% 7
218 9
9%
138 6
5% 1
163 1
7%
110 A
A40
100%
Adjusted Median
Household Incomo lc)
Income Range
Less than $15,000
$15,000 - $24.999
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$751000 - $99,999
$100,000 - $149,999
$150,000 or More
Total Households
Unadjusted Median
Household Income
1 $ 4 999 47 2
$39,054
$50,118 $47,265
Ten Mile Radius (a)(b)
1999
2009 (Est)
of Total
Number of Total Number 80�
21999 11 % 2.583 2 466 8%
21950 10% 9%
307 12% 2,987
3. 16% 4,498 14%
5,995 21% 6,498 14%
3,539 12% 4,583
11 15%
% 4,817
3,119 3670 11%
11973 7% 3�2 100%
- �"-' -' 28,380 100%
1999
$51 612
Adjusted Median $66234
Id Income (c)
2009
$63,016
$63,016
Five Mile Radius (a)(b)
1999
2009(Est.)
of Total
Number of Total Number 630 god
887 13% 100/
886 13 °!0 710
733 19 °i
1309 20% 1,267 22%
1,426 20% 1,631 14%
777 111/0 1,014 13%
453 6% 7
261 4% 41
6 100% 7•
441 100/ %
2009
1999- $55,205
$43,612
$55,967 $55,205
Househo
Notes:
re ated Census block
(a) Radii are defined using the intersection of Hill Street and Cornelius d ten milerads represent aggregated ggntg See Figure °f
details. oiled by Cladtas for the two, five, rtioned based on the
ra hi, figures reported
(b) Demog p (here is some variation in the population
group level data. Data for block groups that are partially within the defined boundaries are a
geographic centroid of the affected block 9r °uP� For different data variables,
as well as of general growth Vends and dem
population and household counts that re ographic characteristics.
suit' however, the estimates provide a based onitha Bucareau of Labor Statistics
ra hies are adjusted by a factor on for the fi$sl half of the year, to reflect incomes that
and household counts in the affected areas,
(c) 1999 median incomes for all geog P
consumer Price Index for all urban consumers in the South Reg
are adjusted to 2009 dollars.
Sources: Clantas, 2009, DCRP, PLAN 773, 2009-
1999
$51 612
Adjusted Median $66234
Id Income (c)
2009
$63,016
$63,016
Five Mile Radius (a)(b)
1999
2009(Est.)
of Total
Number of Total Number 630 god
887 13% 100/
886 13 °!0 710
733 19 °i
1309 20% 1,267 22%
1,426 20% 1,631 14%
777 111/0 1,014 13%
453 6% 7
261 4% 41
6 100% 7•
441 100/ %
2009
1999- $55,205
$43,612
$55,967 $55,205
Househo
Notes:
re ated Census block
(a) Radii are defined using the intersection of Hill Street and Cornelius d ten milerads represent aggregated ggntg See Figure °f
details. oiled by Cladtas for the two, five, rtioned based on the
ra hi, figures reported
(b) Demog p (here is some variation in the population
group level data. Data for block groups that are partially within the defined boundaries are a
geographic centroid of the affected block 9r °uP� For different data variables,
as well as of general growth Vends and dem
population and household counts that re ographic characteristics.
suit' however, the estimates provide a based onitha Bucareau of Labor Statistics
ra hies are adjusted by a factor on for the fi$sl half of the year, to reflect incomes that
and household counts in the affected areas,
(c) 1999 median incomes for all geog P
consumer Price Index for all urban consumers in the South Reg
are adjusted to 2009 dollars.
Sources: Clantas, 2009, DCRP, PLAN 773, 2009-
2009
1999- $55,205
$43,612
$55,967 $55,205
Househo
Notes:
re ated Census block
(a) Radii are defined using the intersection of Hill Street and Cornelius d ten milerads represent aggregated ggntg See Figure °f
details. oiled by Cladtas for the two, five, rtioned based on the
ra hi, figures reported
(b) Demog p (here is some variation in the population
group level data. Data for block groups that are partially within the defined boundaries are a
geographic centroid of the affected block 9r °uP� For different data variables,
as well as of general growth Vends and dem
population and household counts that re ographic characteristics.
suit' however, the estimates provide a based onitha Bucareau of Labor Statistics
ra hies are adjusted by a factor on for the fi$sl half of the year, to reflect incomes that
and household counts in the affected areas,
(c) 1999 median incomes for all geog P
consumer Price Index for all urban consumers in the South Reg
are adjusted to 2009 dollars.
Sources: Clantas, 2009, DCRP, PLAN 773, 2009-
Mile Radius (a)(b)
Five
Mile Radius (a)(b)
2009 (Est.)
Two
2009 (Est.)
Total
200 0
of Total
percent
of
23%
Total Nun,
of Total
Educational Attainment (a)
of
Nu._- ,21
1,215
29%
1,201
28%
25%
Some High School or Less
1 p37
°
25 %
1,043
19%
High School Diploma
g22
190%
811
208
5%
Some College
201
50/6
455
11%
Associate Degree
451
11%
302
7%
Bachelors Degree
304
7%
72
2%
Masters Degree
72
2%
3%
Professional Degree
1 30
3%
4218
100%
Doctorate Degree
�4232 .
100%
Total Population 25+
Mile Red
(a)(b)
Ten
2009 (Est)
2000
Total
Number
of Total
Educational Attainment (a) Number 5
of
15%
8,366
15%
22%
Some High School or
10,910
22%
12,179
1S%
High School Diploma
g,907
8%
9,971
3,,16
7%
Some College
3,349
7%
J1,168
20%
Associate Degree
9,84B
20%
5,594
10%
Bachelors Degree
41821
100/-
2,007
4%
Masters Degree
1,747
4%
2417
Professional Degree
2068
4%
��-
55, 479
��%
t00%
Doctorate Degree 25+
4�7
100%
Mile Radius (a)(b)
Five
2009 (Est.)
2000
Total
Nu =�
of Total
Number
of
23%
2,960
23%
835
°
260%
18%
2,33
Igo%
2,228
7%
893
827
14%
1781
14%
1,676
8%
1,063
80
978
20/
281
2%
255
2 °/
287
2%
271 1222
100 °!0
1
100%
Total Population Figure 1 for
Notes: the intersection of Hill Street and Cornelius Street as the center point. See Fig
re aled Census block
(a) Radii are defined using ginned based on the
details. ores rep by Claritas for the N+o, five, and ten mile radii represent aggregated
fig
(b) Demographic that are par0 different within the defined boundaries are v population
group level data. Data for block groups For different data variables, there's some vadation in the aggregate
geographic centroid of the affected block group. growth if
and demographic characteristics.
population and household counts that result; however, the estimates provide a reasonable indication of the
and household counts in the affected areas, as well as of general g
PIAN 773, 2009.
Sources: Claritas, 2009; DCRP,
Two Mile Radius (a)(b)
2000
2009 (Est-) pereent
of Total
Number of Total Number
Household Race/150MI011Y c)
Not Hispanic or Latino
White
Black or African American
American Indian and Alaska Native
Asian
Native Hawaiian and Other Pacific Islander
Some Other Race
Two or More Races
Subtotal: Not Hispanic or Latino
1,712
70%
645
,696
67%
29%
645
27%
12
0%
8
0%
7
0%
6
0/
0
0%
0
0%
2
0%
2
0°/
32
1%
26
%
99%
9
98%
2,399
18
2
0%
Hispanic or Latino
9
11
0%
White
Black or African American
0
0%
Indian and Alaska Native
0
0%
American
0
0 /
Asian
and Other Pacific Islander
1
0%
Native Hawaiian
1
0 /
Some Other Race
X32
1
Two or More Races
56
%
Subtotal: Hispanic or Latino
77
100%
11
2,431
18
Five Mile Radius (a)(b)
2000
2009 (ESL.)
of Total
Number of Total Number
5,409
1,304
30
26
70
6,843
78%
19%
0%
0%
0%
1%
98%
5,652
1,402
41
40
0
5
100
7,240
25
1%
6 1
0%
91
3
0
0%
3
0%
2
0
0%
0
0%
0
0
0%
0
0%
0
0
0%
56
%
87
77
1%
11
00/.
18
2
0%
132
2%
201
44
2%
4,110
0
101
0%
100%
6,975
100%
7,441
2,440
American Indian and
446
0%
3
Total: Households
Mile Radius (a)(b)
Ten
2009 (EsL)
2000
Percent of Total
of Total Number
Number
Household RacelE1hnic (S)(o)
%
25,448
79%
Not Hispanic or Latino
22 931
81
14%
4 595
14%
White
4,110
0
101
0%
Black or African American
Alaska Native
79
2%
690
2%
American Indian and
446
0%
3
00/6
Asian
and Other Pacific Islander
2
21
0%
23
0%
1
Native Hawaiian
1%
62
362
Some Other Race
245
98%
31,222
97%
Two or More Races
or Latino
27,834
Subtotal: Not Hispanic
Hispanic or Latino
267
1%
0%
424
29
1%
0%
White
Black or African American
18
7
0%
11
3
p%
Indian and Alaska Native
2
01/6
0
0%
American
Asian Islander
and Other Pacific
0
225
0%
1%
368
1% /°
0%
Native Hawaiian
Some Other Race
7
0 /
°/
45
880
3%
Two or More Races
2
Subtotal: Hispanic or Latino
100
32 102
700%
28,380
Total: Households
76%
19%
1%
1%
1%
97
t%
0%
0%
0%
1%
0%
V
100%
and ten mile radii represent aggregated Census blocK grout' id of
Nolen ra hic centroid of
(a) Radii are defined using the inters Clantas forlthe h`m' Ve' Cornelius
boun s Ties a a rtiooed based on the geog P
(b) Demographic figures reported by ate o ulation and household counts
data. Data for block groups that are partially within the defined boundaries are and household counts in the affected
the affected block 9rouP. For different data
a real nab ee. d cation of the tPoP,n the aggregate Pop me
that result, however, the estimates p
ra ,hi, characteristics.
areas, as viell as of general growth trends and head P
(c) Based on self - reported racelethnicity of the head of household.
Sources: Clarilas, 2009; DCRP, PLAN 773, 2009.
iable6: Housing5tocrcoy_r= -- - - ° --
-
Five Mile Radius (a)(b)
Two
Mile Radius (a)(b)
2000
2009 (Est.)
2009 (Est.)
2000
�Percent
Number
of Total
Number
of Total
15.9%
Number of
Total Number of
Total
42%
1,321
676
Year Structure Built ,�.�_
2 40�
268
703
9.3%
9.3%
1999 or la
128
4.8%
122
4.4%
6.4%
805
10.6 %
771
1,675
20.1%
1995 to 1998
185
6.9%
177
13.0%
1,699
22.5%
1,417
17.0%
1990 to 1994
370
13.8%
359
15.5%
1,463
19.4 %
849
849
10.2%
1980 to 1989
449
16.6%
13.,1%
672
11.5%
580
7.0
1970 to 1979
3B7
14.5%
379
13.1%
8.1%
358
4.3%
1960 to 1969
381
14.3%
363
7.6 %
378
5.0%
672
8.1
1950 to 1959
222
B.3 %
210
16.70
715
9.6 %
g,319
100%
1940 to 1949
487%
-�-
OW"
7,559
100%
1939 or earlier
2,672
100 %
2,771
Total Units
Ten Mile Rri
f (a)(b)
2009 (Est.)
2000
percent
of Total
Year Structure
Number
of Total
-5.1 °/
Number
7,243
20.5%
1999 or later
1547
12.4%
3,616
10.2%
1995 to 1996
3,755
12.2%
3,570
10.1
1990 to 1994
3 710
24.1 %
7,256
20.5%
1980 to 1989
7,306
20.9%
20
8,220
17.6
1970 to 1979
6,353
9.7%
2,896
8.2%
1950 to 1959
2,936
0
1,917
5.4%
1950 to 1959
1,994
3 1%
3.1
2.6%
1940 to 1949
955
6.0%
,71
1,718
-�.
1939 or earlier
1,807
,-.
Oj.
36,350
100%
�-
363
Total Units
1 for
Notes:
(a) Radii are defined using the intersection of Hill Street and Cornelius Street as the center point. aggregated Census block
details. Claritas for the two, five, and ten mile radii represent a pport
(b) Demographic figures reported by
For different data variables, there is some variation in the aggregate
o u population
group level data. Data for block groups that are partially within the defined boundaries are apportioned based on e
geographic centroid of the affected block group. the estimates provide a reasonable indication of pop
population and household counts that result; however,
and household counts in the affected areas, as well as of general growth trends and demographic characteristics
Sources: Clarilas, 2009; DCRP, PLAN 773, 2009.
Total Housing Units
Occupied Housing Units
Vacant Housing Units
Units in Structure by Structure TYPO
1 -Unit Detached
1 -Unff Attached
Multifamily 2 to 4 Units
Multifamily 5 to 9 Units
Multifamily 10 or More Units
Mobile Home or Other
Total Unfits (c)
Tvo Mile Radius (a)(b)
2009 (ESf.)
2000
Nun of Total
Of Total
Number
2,432
91% 2,440
9 % 331
240
2,038
76%
2,108
10
7
0%
50/6
135
130
2%
46
43
43
21
%
22
433
A 6%
450
2,771
2,672
10 0 %
1
1/0
88%.
12%
Five Mile Radius (a)(b)
2000
2009 (Est.)
of Total
percent
Number of� Number
7,441 89%
6,9 92% 878 11%
5887 7 8%
Ten Mile Radius (a)(b)
200
2009 (Est.)
0 percent
percent of Total
Number_
of Total Number
Total Housing Units 2
5,191
69%
5,695
68%
0%
76%
0%
27
07
3 5
321
4
1 -Unit Attached J
296
4%
%
1,113
4%
2%
268
1
1/0
123
1
1%
108
22%
1,843
22%
100%
16%
9
100%
8,319
100%
Ten Mile Radius (a)(b)
200
2009 (Est.)
0 percent
percent of Total
Number_
of Total Number
Total Housing Units 2
28,380
Occupied Housing Units 1
1,983
Vacant Housing Units
Units in Structure by Structure TYPO 2
21,208
1 -Unit Detached 8
894
1 -Unit Attached J
J,131
Multifamily 2 to 4 Units 1
1,113
Multifamily 5 to 9 Units 1
1,669
MulitmollY 10 or More Units 4
4,348
Mobile Home of Other 3
30,363
91%
93% 32,100 9%
7% 3,250
70% 24,658 70%
,021 W.
4 4%
4% 1,350 47
4% 387
69/. %
8% 4%
14% 4,948
100
35,350 700%
Total Units (c)
inL See Figure 1 for k groilu level data.
Notes: and ten mile radii represent aggregated Census biockg P
(a) Radii are defined using the intersection of Hill Street and Cornelius Street as the
center eo ra hic centroid of the ahoovOdOr
ra hfc figures reported by Claritas for the two, five, dloned based on the g 9 P
(b) Demog P re a \e population and household counts that result;
Data for block groups that are partially within the defined boundaries are appo
block group. For different data variables, there is some variation in the se 9
the estimates provide a reasonable Indication of the population and household counts in the affected areas, as well as of genera
hic ch
growth bends and demograparacledsl'�cs.
Sources: Claritas, 2009; DCRP, PV+N 773, 2009.
Total Units (c)
inL See Figure 1 for k groilu level data.
Notes: and ten mile radii represent aggregated Census biockg P
(a) Radii are defined using the intersection of Hill Street and Cornelius Street as the
center eo ra hic centroid of the ahoovOdOr
ra hfc figures reported by Claritas for the two, five, dloned based on the g 9 P
(b) Demog P re a \e population and household counts that result;
Data for block groups that are partially within the defined boundaries are appo
block group. For different data variables, there is some variation in the se 9
the estimates provide a reasonable Indication of the population and household counts in the affected areas, as well as of genera
hic ch
growth bends and demograparacledsl'�cs.
Sources: Claritas, 2009; DCRP, PV+N 773, 2009.
Labor Force Trel ids and Randolph
men" rates for Orange County fluctuated eO7ion of Ala an e,eorange' o a high of 4.
Unemploy ercent, as shown in
ercent to a high of 6.6 P e Count' and 6.6
Percent between 2000 and r ct��8 d from a low of 3.1 P meat in orange
counties unemploY around 4 percent "'employ
Table 8. Current rates are reportedly e ion.
percent unemployment in the tri- county region.
growth projections by sector for the Tri- County region
Occupational Ernptoyntenl Prolectiol}s
to meat and g' meat, educational and health
Table 9 shows currant emp Y and trade, transportation and
(identified above) and North Carolina. hr tens 611 o�
services, goods - producing, manufacturing, services-providing,
g obs. Growth is expected in many sectors, mos
the professional and business services sector,
utilities are the sectors with the largest numbers t j
notably in the education and
sector-
17 services sector,
and the services -p
17
2007
2008 -zuuu - <��� I
2005 2_ 006— 66,956
2003 2____0�`� -- 65,113 65,610 7.0%
002 - ---- -- 63, 53 6 6 6 61
— 62,956
-- 6 6
Orange County -- ------ 401
Employed 2,314 2,807 64,326 65,
1,638 5,245 6 0 3.7% 3.3% 3.2% 4.0%
Unemploy� �7 1919 6
Labor Force o 3.5% 4.3% 4.30 3.8% Average
2.5 /0 Annual
Unemployment Rate Change
2006 2007
2008 2000 -2008
2005 , ' �j� 136,232 °
o
2000 2.�— 2—�0 '_ 12 19 19 209,647 20-. _ 9=--
Tri -Count 20"' 0 p 19 0 2_ 12�_ 20 5 20 621 20991541 213'899 211,818 145,825 6.6%
Employed
Unemployed .--- 217,112 0 713 6.0% 5.1% 4.8% 4.5% 4.4%
Labor Force 206,424
Unemployment Rate
3.1% 4.9/0
Note: Region is defined as Alamance, Orange, and Randolph Counties.
�a) For the purpose of this analysis the Tri - County 9 2009.
sources: Employment Security Commission, 2009: DCRP. pLAN 773,
- -- - A
Tri- County Region (a)
Average
Annual
Growth
2014 (est.) 2
200
Group �
2004 2
�- 1
1.6%
Major I
47,595 5
59,967
1.1%
Education and Health Services 4
4,999 0
42,844 1
0.3%
Financial Activities 9
41,755 4
91049
1,4 °/
Goods - Producing 7
7,898 1
1,387 1
1.0% 2
Government 1
1,254 1
29
1,7%
Information 3
14,609 1
32,
_0.1%
Leisure and Hospitality 3
32,727 4
462 -
-0.60/6
Manufacturing 4
491 1
7,440 2
1.8%
NaturaleNlces "X pt Grovernmes 1
15268 1
10,970
2.0%
Other S
123,955 1
150,970 1
1.5%
Services - Providing 2
26,114 ,
,��
Trade Transportation, a
331,420 3
North Carolina
Average
Annual
Growth
2004 201 200
2 263,880 2.6%
778,960 1,011,280 1.4%
188060 217,060 0,1%
814,020 818,360 0.9%
264,000 289,930 1,4°/
72,370 83,420 2.1%
348,930 428,640 -0,7°/
578,710 538,120 _0.3°/
16,840 16,360 1.6%
155,450 181,560 2,8%
430,640 567,650 2.0%
2,987,470 3,651,820 1.5%
749,160 872,280 _- , 6%
1.6 /o
7 6� 8,940,360
ational Employm
Total Occup Orange, and Randolph Counties.
Note: in this table the Td-Co
Region is defined as Alamance ,
(a) Due to data availabilly, 2009; DCRP, PLAN 773, 2009.
Sources: Employment Security Commission of North Carolina,
ational Employm
Total Occup Orange, and Randolph Counties.
Note: in this table the Td-Co
Region is defined as Alamance ,
(a) Due to data availabilly, 2009; DCRP, PLAN 773, 2009.
Sources: Employment Security Commission of North Carolina,
Population Growth Projectiolis
Population t Aow growth Projections i were
s created for th
that the each area's 2000 o 20091annual ten-mile radii
average growth rate would continue to apply through the year 2029. Based on these roxims the
two -mile radius would continue to slowly decrease in population, and would lose approximately
140 residents u 2029. The approximately 2 400 Land 24,500y residents by 2029, respectively- High
increase in population of app' growth rate for the Tri-
growth estimates were derived by applying the e). B average population
300, and 36,000 residents
County region (Alanance, Durham, and Orange). Based on this higher rate, the hvo -, five -, an
ten -mile radii would increase in population by a total of nearly 2,700, 8,
respectively, or at a rate of 1.8 percent annually.
summary
Overall demographic trends
e pro orlon of older aresidentts; a comparatively low experiencing ed n inccome; a
population decline; a - growing a P
large share of African - American residents; lower than average educational attainment; a relatively
high residential vacancy rate; lower home ownership rates; and an older than average housing
than average une
stock. At the county -level, tine area is experiencing lower mployment, but this
may be influenced by tine inclusion of other nearby towns such as Chapel Hill in the county -level
figures.
20
Study Area
Mile
Five Mile
Ten Mile
2000 2009_.
-- --6158 6,093
17,943 18,930
71,662 80,751
Averayc
Annual
2029 (pro!.)
Growth
Low (a) High (b)
2000.2009
--_ 71
- _,__ -___.-
---- 5 955 8,787
Annual
21,322 27,300
0.6%
105,291 116,455
13%
Growth
Average
Annual
Growth
2000 2009 (est.) 2000 -2009
149,339 1.4%
Alamance County 224,619 267,394
2.0%
Durham 131,123
116,017
Orange Co_ u�nty -- 472,139
R ion
Tn- County e9
Notes:
(a) Low - growth population estimates for 2029 are based on the average annual growth rate in each area betweeO(a 0 00 anCo200� region, as
y as
Claritas. Thus, estimates assume a continued low rate of growth.
timates are based on the average annual growth rate of
(b) High - growth population es the Alamance, Durham, 9
reported by the OSBM.
Sources: Claritas, 2009: Office of State Budget and Management, 2009: DCRP, PLAN 773, 2009.
Average
Average
Annual
Annual
Growth
Growth
2029 (pro!_)
201p 2028
200 ----- o
2010�p!_:)
2020 (prom)
- 215,515
1.7 /0
152,680
185,900
406,895
21%
2.1%
274,371
344,120
679
1.2%
1.3%
�1
151,229
- 151,229
____.�9
-- -'-58%
560,002
681,249
Tn- County e9
Notes:
(a) Low - growth population estimates for 2029 are based on the average annual growth rate in each area betweeO(a 0 00 anCo200� region, as
y as
Claritas. Thus, estimates assume a continued low rate of growth.
timates are based on the average annual growth rate of
(b) High - growth population es the Alamance, Durham, 9
reported by the OSBM.
Sources: Claritas, 2009: Office of State Budget and Management, 2009: DCRP, PLAN 773, 2009.
Existing Land Uses
The US 70 /Cornelius Street con-idol' s characterized by single- family dwellings on large lots,
-al retail interspersed with hand 710 of there ta eralso manybracant andluude utiliozed parcels that, rezoned
Along this sect nt a for additional commercial and mixed
and consolidated, may provide significant opportunities
residential development approximately 12 active
According to the US 70 /Cornelius Street corridor Strategic Plan there are
parcels, only 12 are zoned for connnercial uses. Town staff,
businesses along the corridor, including "a Laundromat, ABC store, barbershop, convenience sore,
PC rezoning of parcels, given appropriate development
and motel." Of the 21 vacant p ether, allowing
however, have voiced support for p close tog
proposals. Overall, vacant and existing commercial properties are grouped
for' easier coordination between existing businesses and new cotmmercial development.
Nearly all of the 30 existing Parcels zoned for commercial use were labldachaRea Sesfio
Development" in the corridor plan. There are some significant come topographic e line.
development on lots along the eastern portion of the coll 30 feet Of tile front oprope property line.
et
and Hill Road. These 13 p
arcels have a steep g' topographic
presence of exist in development leaves roughly 35 parcels and a total of 17.7
Utilizing an analysis of development potential of parcels from the 2007 Corridor Plan, topog
challenges and the p'
acres of land ready for redevelopment An additional four acres are available for redevelopmen
with significant improvements necessary. y area
1 store and
Land uses along
Clrurton Street portion
The no
Of n-residential properties include aranotel stud
supply o d
those West greater concentration of commercial and retail space
ois a of the corridor, but nothing very substantial. Two large
a church. In this area there is a slightly g'
compared to the western p space immediately to the east of chrton Street.
cemeteries use up most of the av ailable p acel P
Even further east there is additional residential development; a cluueh on the north side of shopping
between Orange Highide of Gwen Road; ad; reenl oilthe nodlBoulev rd and St11May'sdRoad ;aping
center on the no 's Road.
convenience store and tire shop at the intersection with St. Mary
Current Real Estate Market Conditions
lre us 70/cnnrelins street corridor and
To assess existing real estate market cond1eioPlo�e t Beam and Town staff conducted a group
throughout the Town of Hillsborough,
interview session with three prominent local real estate brokers and developers. One unique
outcome of these interviews was the acknowledgment that the historic aversion to large scale
22
commercial development in the region has resulted in a local and regional tax base that is heavily
reliant on residential property values. Thus, interviewees showed an eagerness to promote
additional sales tax generating uses within the Hillsborough downtown, along the US 70 corridor,
and in the commercial district south of the Eno River.
Retail
Retail space in Hillsborough is largely concentrated in the downtown and along the Church
Street /State Highway 1009 h is large.]
south of the Eno River and north of I -85. According to
brokers, retail in the downtown has remained relatively strong, wnHi recessionary pressures.
Approximately test years ago most of what is now retail in downtown Hillsborough was occupied
by first floor office suites. Since that time, local activism and the efforts of local real estate
stitute one of
professionals have successfully attracted retail establishments that now con
Hillsborough's main attractions. South of the river, retail remains relatively healthy, except for the
Daniel Boone Shopping Center which has historically experienced frequent turnover. Overall
vacancy in the local market was estimated in the low teens. This is in contrast to figures published
by NAI Carolantic that suggest a 2008 shopping center vacancy rate of only four percent.
However, the only apparent vacancies in the downtown are the forme' government buildings along
Church Street. Lease rates for retail space reportedly range between $18 and $22 per square foot,
per years eago when s paces per square
only $14 pensqua This is a significant
foot, per year or change 1$11.00 per
square foot, per month.
Office
Office space in Hillsborough is reportedly exhibiting an elevated vacancy rate of roughly 2
percent. In comparison, CBRE reports an office vacancy rate of nearly 22 percent for the Triangle
region, and over 17 percent for Orange County. Net absorption in Orange County and the Triangle
region show a reported loss of 14,200 square feet, and 494,600 square feet, respectively, in the
second quarter of 2009. This implies an increasing level of vacancy. Broker reported lease rates
for office space between $10 and $16 per square foot, per year; or $0.83 to $1.33 per square foot,
per month. This is significantly lower that) the County and regional averages of $22.06 and $20.55
per square foot, per year, respectively! These depressed lease rates emphasize that Hillsborough is
a secondary destination in the market for office pace.
Industrial and Flex
Similar to the office market, flex space is experiencing an elevated, but much more reasonable,
NAI Carolantic Realty. 2009'1'riangle Connnerciat Real Estate Report. ++n +'++'xarolantic.com. Accessed
November 5, 2009.
CB Richard Ellis. iularketView: RaleiglilDurham, North Carolina— Office. +�� +'++'•ebre.eondreseare .
Accessed: November 5, 2009.
23
oxituately 15 percent. Orange County ON a vacancy rate of around I6
uarter of 2009, and the Triangle Region experienced a vacancy of
vacancy rate of app' relatively well
percent during the second q h in articular, are fairing
industrial real estate market. Brokers reported lease rates for light
nearly 20 percent. Thus, Orange Count}' and Hilisboroug , P flex
compared to the larger regional pet, square foot per year with more adaptive
Per square foot per year, or around $0.75 per square foot, per
industrial warehouse space at around $4 ore p q square
foot, per year for
space fetching be $8 and $9 P e lease rate of $3.50 per they
month. In Orange County, CBRE found an average
warehouse spaces and $7.40 per square foot, per year for flex space. hn the Triangle region
lease rate of $4.26 per square foot, per year for warehouse space and $8.53 per
found an average square foot, per year for flex sp ace.
purchase in and around
Land opportunities for
There is a significant amount of large number of Properties offering oPP
reenfiOld land that, upon approval, could be
Hillsborough. Not only are there a larg
redevelopment, but also a reasonable amount of g'
developed for commercial uses. es I -Si es that
Stop- anticipated for redevelopment include the Danis
Boone Shopping Center and
ro ect team identified two parcels currently for sale m the
Utilizing Loopnet.com, the p' l
oxhnately $97,772 per acre. The second
Hillsborough market. The first is located 000 or app land Drive near intestate-85 and includes a total
4.04 acres for a total asking price of $395,
I -85 and Old Highway 86 and includes 9.65 acres for
both
is similarly located along per acre. Considering that these prop e of
property 000 or around $108,808 p
asking price of $1,050, commercial developments along the interstate, Property
located within close proximity to existing
values are likely somewhat higher than those that could be achieved along the US 70 cocci m••
challenge to development efforts in tile istc edlto tile eastsofile
aloes are likely
the oule oavailability of developable land in the south side commercial district an
downtown areas will p
provide options for developers interested in commercial and
Cornelius Street area. The Waalso pre Economic Development s District
study area along US 70 may
office S d evelopmen.t.
a lina— Industrial. w�cbrecotneseuch.
CB Richard Ptlis. varketViM: RteighDurham, North Caro
Accessed: November 5,
6 Ibid.
24
Health Services Assets and
0p p ertunit1es
This section analyzes Hillsborough's health care service providers and explores two potential
models for health care delivery that could serve as anchoring institutions for the Cornelius Street
area. Health care services were first considered for the Cornelius Street corridor based on public
input gathered for the US 70 /Cornelius Street Task Force report. Residents expressed a desire for
greater access to medical services, particularly urgent care and dialysis. Given the aging
population of the town, health care could be a compatible use for Cornelius Street. Discussion with
Town staff and local real estate brokers also identified health care offices and related services as
desired uses, compatible with the many mixed land uses targeted for the corridor.
A health service center on Cornelius Street could encourage related or supportive development,
such as other medical offices or suppliers, or the development of unrelated uses that would
nonetheless meet the needs of future employees and current residents: for example, restaurants and
retail. In either scenario, there would be an increase in services available to residents of the
adjoining neighborhoods and the town as a whole. Development of this nature could also provide
valuable employment Opportunities for Hillsborough residents.
In order to fully assess the appropriateness of health services as a development strategy for
Cornelius Street, the project team inventoried Hillsborough's existing health assets using
information available from a number of sources and sites, including: the Hillsborough Chamber of
Commerce; major area health care providers such as Duke Health, UNC Health Care and Piedmont
Health; North Carolina's Department of Health and Human Services and its Center for Health
Statistics; and several state and national directories of health care and service providers. County
level data were also used to inform the asset mapping process. This is because in some cases, data
is not available at a smaller disaggregated level. This was also done in recognition of the fact that
as a small town, Hillsborough functions as part of a bigger region. The inventory was analyzed and
used to produce an asset map.
What is an Asset Map?
An asset map is an inventory and analysis of resources and capacity within a certain industry or
service cluster. Analyses such as these can be used to identify currents strengths and critical gaps
or shortfalls. From these insights, policy makers can develop recommendations on how to leverage
existing assets toward the achievement of development goals. The North Carolina Community
Health Assessment Initiative, a state -wide program, considers asset mapping as a critical step in the
larger strategy aimed at bettering community health.
25
Identified Assets
he project
team discovered that Hillsborough's health care providers are most greatly concenh'ated in:
Based on a representative — if not exhaustive — inventor} of 8t health service providers, t
• Dentistry (17 percent, or 14 providers);
• Psychiatry and psychology (15 percent, or 12 providers)
actice (11 percent or 9 providers);
• General practice /family p'
percent,
or 7 providers).
• Nursing homes, adult care and/or assisted living facilities (9 p
Other notable assets located within Hillsborough include: reheusive
professions
'fie Orange County campus of Durham Technical College, which offers a com
suite of career preparation practical uu singGeurse assisting, dental lab tech ology' surgical
(including registered and p
technology, opticianry, pharmacy techmology> and medical assisting);
Orange County's Richard L. whitted Duman Services Center, a public clinic that provides
• medical and dental services for adults and children;
Orange County Departments of Health Social Services;
Duke Medicine, located on
Three home health care providers with offices in downtown Hillsborough;
• A hospice and community bereavement center operated by ectrum
Corporate Drive; and and equipment firms, including Data Sp
• Several advanced medical technology
ents, Medtec, and Isoteelmologies.
Corporation, Monitor Instrmn
Assets located within near tine Cornelius Street corridor are:
o Tine R &G Family Care Home, an adult day care center, located on Faucette Mill Road near
the intersection with Cornelius Street;
located near the intersection
Corner Care Clinic, a minor care, walk -in clinic at Kerr Drug
of Clmrton and Cornelius; and
ractice physicians specializing in dentistry, chiropractic
• No less than five private p
medicine, and podiatry.
Finally, a UNC n i dicTh This cpnpus vill eCincludeemed ctal offices,` and a 68t bed hospital Economic
Development Dist ei a pharmacy, laboratory facilities, occupational and
in-patient rooms, surgery, p leted in 2014. Its
hospital will include ie, care. This development is scheduled to be comp
physical therapy, and emergency
26
Pinure 3: Hillborough Health Service Provider
Legend N
Q Health Provider Locations
2 -Mile Buffer
5 -Mile Buffer
Census Designated Place
County Boundary
♦c' -' 3 '1±1 r }
Sources: U.S. Census Buearu, 2009; ESRI, 2009; DCRP, PLAN 773, 2009.
completion will represent au infusion of services and employment opportunities for Hillsborough
residents.
Occupational Concentrations rofessions are
h,s health assets is to assess hwhich orth Carol ina State Center
Another way to understand Hillsboroug ations are listed Table I1 below.
best represented in the workforce. This data eveL These oc up g
for Health Statistics, but only at the county es of health professionals per 10,000
Peel counties, established by the North
Orange County boasts a greater concentration of almost all eel
in population than
the state as a whole, as well tl its p two to four times. These occupations
Carolina State Center for Heald�ats peers andlthejetatelbynston andthR tablegat least 1n part, to
some cases, Orange County exce
are listed in Table 13. Undoubtedly, these high concentrations are attributable,
el h for any future
the UNC hospitals and health facil aunt located and potential assets IH llsboroug etfor a ly these
professionals are asset to Orange County and p
health care - related development.
community
oat for orange County retrieved on November 22, 2009 from
North Carolina State Center for Health statistics, Comprehensive Assessment of Trackurg
Health (NC- CATCH) System. Rep assthroug
lattp: / /WNN' V. nCpublichealtheatcli .cc,nl/RepoTtportal/login.aspx.P
M
orange State
Count
county
4.9
Health Occupation
7.8
2'4
4.4
Contal Hy9i�ists
11.5
1.5
3
Dentists
11.1
6.9
9
Nurse Pmc86oners
19.6
2
2
4.6
pharmacists
13.6
20.8
Physical Therapists
86.9
5.2
9
Physicians
PC-Maly Care Physicians
31.7
17.2
0.4
2
94.4
Psychologists
228.2
44.1
2
4.1
Registemd Nurses
8.8
Respiratory Therapists
State
Center for Health
Note:
(a) Peer counties a2 defined by
the North North
dohr>ston, and Rockingham Counties.
Statistics and include Chatham,
Health Statistics,
NC-CATCH System,
stern,
North Carolina State Center for
Sources:
2009; DCRP, PLAN 773, 2009.
community
oat for orange County retrieved on November 22, 2009 from
North Carolina State Center for Health statistics, Comprehensive Assessment of Trackurg
Health (NC- CATCH) System. Rep assthroug
lattp: / /WNN' V. nCpublichealtheatcli .cc,nl/RepoTtportal/login.aspx.P
M
is
Licensed practical nurses are the only health profession for which Orcoerri has ty 15.4
underrepresented when compared to its peer counties and the state: orange
for the county Hillsborough,
licensed practical nurses pet' 10,000 compared to 15.4 and 19.8 for peer countieounty and the town Of
and the state,
respectively. This may represent an occupational gap
Opportunities for area
or high - demand profession that could represent potential employment desirable
residents. Further research could determine that and what tile d to outblook foxttl el ooeupat orn is. ratio is considere
of licensed practical nurses to general pop
Models for Health Care Delivery
Community Health Centers
SA as community- based, patient-
Services' Health Centers (CRCs) are recognized by the U.S. Department of Health and f uman
o ulations and communities with limited
Services' Health Services and Resource Administration (HR HCs are
directed organizations with a specific mission to serve p p the following
p g the HRSA as meeting
access to health care. CHCs, also ]atown as Federally Qualified Health Centers (FQ >
private or public tax-exempt or anizations recognized by
requirements:
Location in, or service of, a high -need community,
HRSA designated as a Medically Underserved
Area or Population (MUAs and MUPs) Y
Eligibility for funding under Section 330 of the Public Health Service Act.
Canplianee with performance and accountability measures res deli rep esentatives;
Governance by a board of directors made up of p PP
and enabling, or supportive, services
Provision of comprehensive health services,
(including transportation, translation and education); and
A fee structure based on the patients' ability to pay; ears and is
tile This model of health care delivery has
low-cost t workse<viee der] very tosMedfca Medicare
and
generally recognized as providing white the
uninsured patients. For example, the average cost $ f an emergency iding a comprehensive set 0of medical
cost of treating one CHC patient for a year is $392. BY P
and dental services— including pventative, primary, diagnostic and emergen
P" cy services —CHCs
i
reduce the burden placed on the public health system by uninsured residents utilizing emergency
h their support service functions, CHCs
patients enroll in Medicaid and other public
rooms for primary care services. Furthermore, t roug
expand access to insurance by
helping eligible p
$
North Carolina Com mun it), IIealth Center Association. 2009, FQHC Economic Pact Sheet. Retrieved on
No
November 29, 2009 from hnP: /Avrrnv ncchca.org/238733.ihtml.
29
assistance programs. 9
of all ages, races, ethnicities and levels of pratednbyox26
Nationwide, health centers serve People
health and dental centers, operated
In 2007,
Carolina, there are more than 120 community percent were uninsured, 20 percent were on
anizations and employing nearly 1,900 full -time medical and administrative staff• Percent of
org 79g patients. Of these, 51 p e 65 and over accounted for 9 p
the center's served 380,
and 17 p e of 12 and women ages 15 -44 accounted for 19 and 2
Medicaid, percent were on Medicate• Patients erg
total visits while obi Idren under the ag
percent respectively front HRSA. Of the many located
operated by organizations piedmont Health, headquartered in Carrboco, operators
CHCs are op or aniaations eligible to receive funding eratrth
County. See Table 12 below for a list of ClIC op
within North Carolina's Triangle region, Y
Carolina, provides services in orange
located in the Triangle area
Tablel2:.friangleArea ncu. •,
Prnoi der Organizatim
Piedmont Health Services, Ine. ti Family Medical Center,
Wake Health Services
linmin Cmmnunity Health Curter' Inc.
F. Choice CmmnunityHealth Services
Source: DC4:�p,ptAJ773,2009
Locations
on 2sites), Siler City, Prospect lfill
Carrboro; Mote¢; Burling
Roxboro Franklin Count}';Fuqua}'- Varina
Raleigh(5 sites) ;Apex,
Durham (6 sites)
Angler
lemented
Piedmont Health and Orange
county CHCs
CEO of Piedmont Health, suP
typical characteristics of CHCs in Orange
Based on a November 10th interview with Brian Toomey operates l characteristics
six CHCs and one senior care
with online research, the following section outlines the typ
County• Established in 1970, Piedmont Health currently
facility in Orange, Caswell, Chatham, and Alamance counties. e CHC operated by
Ranging in total floor area from 6,000 to 15,000 square feet, the average
Piedmont Health is roughly 10,000 square feet. Typically, facilities have a minhnum of 9 exam
Benefits. Accessed on November 28, 2009 at http: //bphahrsa.gov /about/be
neitts.hur"
v U.S. Department of Health and Human Services Hearth Resources and Services Administration. The Heat t
Center Program.
,o
ibid. 2009 from
u
State reports: North Carolina. Retrieved on November 29,
U.S. Department of Health and Human services Health Resources and Services Administration.
Uniform Data System; State -bY-
hnp:// bphc. hrsa. gov/ uds12007 datalnorthcarolina/sitesummar}', tm
30
nursing stations, and laboratory
and
in 100 square feet each, plus waiting rooms,
from 20 to 22 full-time equivalent staff including at leas
ort staff (three per doctor), and additional
rooms averaging
pharmacy space. Most CHCs employ Per week, with half of Piedmont
tluee primary care doctors, a minimum of nine supp
staff. Facilities are open a mrnnnum of 40 hours P typically run between $118-$135
pharmacy horns. Construction costs tyP CHC construction is usually
hl $700,000 to $2,000,000 per facility.
Health's locations offering Satur aY
per square foot, or roughly
funded through a combination of federal Grants and USDA loan foods'
a miuimum:
Federal statute requires that CHCs provide the following services,
primary medical care; radiological services;
Diagnostic laboratory and
Preventive services including prenatal, pernatal and child services;
Cancer and other disease screening,
nmumzations; communicable diseases and cholesterol;
• h
Screening for elevated blood le children;
• d
• Eye, eat- and dental screening
Family planning services;
Preventive dental services; and
Emergency medical and dental services;
plrartnaceutical services. are provided based on specific
Other services, such as WIC and services for migrant populations,
community, needs.
Medically
Certified Need CHCs can only be established in areas with a cettifie
to Mr. Toomey and the HRSA, niftcant barriers to access. M
According Persons
shortage of personal health care services, andy s sd groups of p
UAs are counties or county subdivisions to whteh residents have a s or ag
Underserved Areas (M )
Underserved Populations (NNPs) include g' P
of personal health services. Medically IMU) calculated on a scale of 0 to
who face economic,
cultwal e linguistic barriers to health care. Criteria for certification as a
ualif ing as MUAs or MUPs. The 1MU index score considers:
MU all are base
62 andlundet' q of Medical Underservice
100, per 1,000 population;
1) The ratio of primary medical care physicians
2) Infant mortality rate;
level; and
3) Percentage of population with intone 6 beaneovet'pover y
4) The percentage of the population ag
31
CCHCA)
organizations interested in
hrt. The North Carolina Community Health Care Association (N
Additional informationlon how the HRSA calculates IMU sari �1�° and fo found at htrp: / /61xP� "• a+'s
ov /sleortagehnunguide.
also provides consultation and technical assistance to obtained at I
establishing a CHC. NCCHCA resources a 29 batebtamed at hrtp: 77x' rx'xx'.nechca.org /179591.i}xrrn .
Ili 2048, there were 61 PACE programs
Program of All- Inclusive Care for the Elderly (PACE)
model of service provision• The PACE
m Burlington, Nox-th Carolina, following tile
piedmont Health also operates an elder -care facility lace "; or,
(PACE) in in p
program of All- Inclusive Care for the Elderly term health care in their o«'n
model, first piloted in San Francisco in the Preventive, 1970s, acute as and long1t idea a "aging
providing the elderly With primary, p' able to live safely in the commwx ty,
services from the PACE program.
communities. This model is suitable for individuals judged
contingent upon receiving
PACE patients are cased for by and according to a plan devised by an integrated team of service
providers that must include one each of the following:
• Primary Care Physician;
• Registered Nu'se;
• Masters -Level Social Worker;
• Physical Therapist;
• Occupational Therapist;
• Dietitian;
• Recreational Therapist or Activity Coordinator;
• PACE Center Manager';
• Home Care Coordinator;
• Personal Care Attendant; and
Van Driver:
center. PACE facilities can be
adult day care center's, coxnxmmity centers, or
Services can be provided at home, or at a dedicated PACE ay h sician and nurse
incorporated into dedicated elderly care cludlita health C1s, and at least one room for social or
another medical facility. Day centers include a health clinic with al on -site p y
practitioner, physical and occupational therapy fac
recreational activities. Transportation is provided to and fcorn the center and other medical
appointments.
32
Establishing a PACE Program organizations in North Carolina
As of December 2008, Piedmont Health was one of only two or
existing
PACE sites must be sponsored by
operating on the PACE model. Similar to CHCa> rs. Cos, hospitals, and state or county
organizations and cats be combined with existing facilities. Common partners include community
health centers, non - profit agencies, long -term care p
agencies.
Establishing a new location requires an application for Federal funding, and certification of need.
Key measureshequirements of need certification include:
I) The mm�ber eligible patients within a 4 providing e driving of the case facility;
2) The involvement of physicians in providing program design input and outreach to the
medical community; and tovider capable of assuming start -up costs and financial
3) Support by an organization or p'
t2
risk.
applications detail the organizational, governance and financial structures, and capacity
Complete o osed program. Applications are also required to
organization and proposed osed facility. It Is
of both the sponsoring g and descriptions of the prop
provide marketing plans, service delivery plans,
important to note that existing PACE programs can establish satellite locations without submitting
a full application.
application roeess can also be found at http: / /� ",.xovide
P
Additional information on the PACE app regarding these
line.or'gf p applications.
Additional information reg g
website /download,as d -2806. PACE Technical Assistance Centers also
consultative services to facilitate successful app weonite /download.asp ?id =74G.
services can be found at http: / /w�^v uPaonline.ofg/ artment of health and Human
agency responsible for tile North
PACE programs in North Carolina. More
The Division of Medical Assistance of the North Carolina Department
Services is the ag Y
s /d
information can be found at http:/ hvNvw .dhhs.state.nc.uma/services /pace. ttm.
ent Potential rima health care
ity health centers Workforce ®evelopm preventive and p' n
As was described earlier, o° u r es for health care professionals. CHCs axe staffed by physicians,
services, as well as job Opportunities career The Durham
dentists, dental technicians, muse provides multiple eateetj tracks in their Health Technologies
Technical Community college p'
Number 10. Retrieved on
2009 from http:��wN'"'npa° mine. orgJwebsite /dowutoad.asp ?id =4d3
rz Center for Medicare Education. 2001. The PACE hfodel. Issue Brief: Volume ,
November 29,
33
to went with local health service providers,
cluster that may provide potential avenues for emp Y h decides
including any future health care unities developments. Partnership with Durham Tech could offer
new higher- paying employment oppOr� or P to area residents if he US`70 eorr corridor Or ele where in
to facilitate the establislnnent of a CRC or PACE facility along
the community, es for an assortment of common
The following table shows the average national and state wag
aining for which Durham Tech offers:
health care occupations, tr
Tat)ie w, ,......._ eAnnual Wage
Average
National
State �-- - --
.�—" $34,170
-- Occupation $33,100
$34,400 $32,380
Dentist Lab Technician $28,300
Dental Pssistans $27,700
$25,300 $27,710
Medical Assistant $27,500 $30,610
Pharmacy Technician $35,380
Health Information Technicians $35,300
Laboretory
Technologists $27,500 $29,680
Medical Secretary
Sources; UNet Onlne, 2009;
DORP, P LAN 773, 2009.
annual wage greater than $26,000 per
within a
As the table shows, the occupations listed all pay ti average o ulation
per year and one - quarter of the population
year. As the demographic data in the previous section illustrated, a third oft e population rovide up
2 -mile radius of the corridor makes less than $35,000 p Y C hospital offer
making less than $25,000 per year. White an individual community health center could p
em to went. Thus, Hillsborough, in conjunction with Durham
to 20 jobs, the combination of a commLmiiy health center and the incoming
many opportunities for well-paying P Y
Tech, has an Opportunity to provide residents with the skills necessary to staff future facilittes,
which will also provide essential services to Hillsborough residents.
34
Retail Market Analysis and
Devel®prnent Irnpacts
mount of money residents from outside the area a
Economists define "leakage" as the amount of money local area residents spend outside of tl i
contrast, "injection" is the a • entifies opportunities for
co td
eommnniry. B5 The following analysis
be targeted for implementation along the US 70 1Corner d
spending in the local community.
retail development capacity that may and Y
Street corridor. This is done by highli ghting retail store categories with insufficient local supply t
h 19 identify leakage and injection within the 2 -, 5 -,
meet local demand. Tables 14 through expressed as the h tt 1
u orted given existing demand. These fig'' i d
mile radii, and translate this excess demand into development cap h' Tables 20
ails ace that could be supported acts. Lastly,
et p impacts. t of 'n
nat square fee and job generau g p r,
addiho q potential business a J capture
of existing
are then analyzed in terms of p gel'
through
21 estimate potential sales
future retail revenue, nandat could be g
leakage and prof
Retail Leakagelinjection Analysis
Hcalti and
Overall, the two -mile radius exhibits a total leakage of over $1G.7 million dollars. The 1::- {est
as of leakage include Automobile and Other Velvcle Dtoress andsElectronaes and Apt
ii�nce
ate
Personal Care Stores, Clothing and Clothing Accessory
Stores. By contrast, these areas of leakage are largely offset by over $45.5 million of injec'i m to
the remaining retail categories. The largest injections are in Non -Store retailing, Feat' and
Stores, Building Materials and Garden Equipment Stores, General Me area is `•tares,
Beverage
and Furniture and Honre dollars. tores. Thus, the lot" balance of trade in the area �:'. i's a net
gain of roughly $28.8 million
lu
Interestingly, data show that there is a tremendous drop in retail trade Sul' exh l within
�
$1.7 million in the five -urile radius, to a retail dea,i ,, d cf citthe
the 5- and 10 -mile radii. As show in Table 14, total retail trade surplus drps fio o t ly $29
million in the two -mile radius, too y
County reflects a net leakage of retail
as sales eomruerci; d hub of
over $562 in in the 10 -mile radius. This data reinforces what e largely
community; that as a whole Orange
they generate. What is surprising is the Town's relatively strong position
northern Orange County, serving the existing Town residents, as well as rural housel ells from
around the area.
Additional Supportable Retail Development supportable retail squa1y feet, the
square foot data collected by the Urban I:.r d Institute
To translate retail sales figures into estimates of additional supp
project team utilized average sales p ereent adjustment cr nonaetail
i.e. business and personal services) and a 10 percent adjustment to i �:f�ect healthy
through a national survey of retail establishments. lnctuding a 14 p
establishments
35
potentially absorb an estimated 23,200 square feet
ace at current demand levels, This includes nearly 12,700 square feet in
retail vacancy levels, the two -mile radius could p >
of assorted retail space Accessories, 7,200 square feet in Health and Personal Care Stores, and
Clothing and Clothing Stores.
3,300 square feet in Electronics and Appliance 000 square feet of retail radius. More
Of special note is the estimated demand capacity for an additional 250,
p for an
space within the five -mile radius, and over 1.8 millions square feet in tluarenfeetlin Clothing and
specifically, our figures indicate that in the five -mile radius there is sufficient capacity
Places, 35,000 square feet in
additional 98,400 square feet in General Merchandise Stores, 52,20 s9
square feet in Foodservice and Drinking lance Stores, and 4,000
Clothing Accessories, 42,000 260 square feet in Electronics and App capacity could
I Stores category. This sizable demand cap ro
Health and Personal Care Stores, 20,
square feet in the Automotive Sapp Y
represent significant opportunities for the U.S. 70 corridor to capture retail sales fiom throughout
the greater Hillsborough area.
o ect team utilized regional population growth projections to
Projected Future Retail Demand ion�'th estimates assume that
To facilitate long-term planning, the p' J low -g' rowth
develop estimates of future retail demand. Shown in Table 13, since
rake, defined as
population growth will continue at rates similar to thoepopulatiwnstgce 2000. e Budget and
projected 2029 tri- county regional the Office of State Budget
estimates assume the prof 2029 within tine
Alamance, Dwham, and Orange Counties, using data reported by
wes, the estimated increase in retail
figures square feet, the
Management. Based on these fig 000 and 333,000
two -mile radius is between $66.a� d $rthi� thelhv to le rachr s is between 226, percent vacancy
total projected development cap y percent non- retail adjustment and 10
square feet of retail, including a 14 p
adjustment. general merchandise stores
oriel projected to experience the largest growth include to 000 additional square
The retail can $ p ro ected demand, also
with between $12 million and $18 veragenstores have the second highest p J uare feet of
feet of development. Food and beverage ui ment stores category shows an
with beriv,en $12 million and $18 million in retail saeq p9'000 to 42,000 sq
potential development. The building materials and garden
estimated increase in and of
square early of $1 million
development more than $14 million in retail sales, an
between 23,000 and 34,000
M
Estimatea - Reran ---
Estimated Total Per Capita Retail Sales
.(Sum (Leakages
Consumer Expenditures c.nonditures ,
Automotive Supply Stores
Furniture & Home s oStores
Electronts & App l aoceStre
Stores
Building Material, Garden Equip
Food & Beverage Stores
Health & Personal Care Stores
Clothing & Clothing Accessories sSt Stores
Sporting Gds, Hobby,
General Merchandise Stores
Miscellaneous Store Retailers
Non -Store Retailers
FOodServtce & Drinking Places
Auto and Other Vehicle Dealers (b)
Gasoline Stations
iTotal for all Categories with Leakage
Balance of Trade
Automotive Supply stores
Furniture & Home ) Furnishings Stores
Electronics & App Stores
Building Material, Garden Equip
Food & Beverage Stores
Health & Personal Care Stores
Clothing & Clothing A Bosok des St Stores
Sporting Gds, Hobby,
General Merchandise Stores
Miscellaneous Store Retailers
Non -Store Retailers Places
Foodservice & Drinking
Auto and Other Vehicle Dealers (b)
Gasoline Stations
Total for all Categories with Leakage
Balance of Trade
Automotive Supply Stores
Furniture & Home Furnishings Stores
Electronics &App Stores
Building Material, Garden Equip
Food & Beverage Stores
Health & Personal Care Stores
Clothing & Clothing Accessories s s Stores
Spoding Gds, Hobby,
General Merchandise Stores
Miscellaneous Store Retailers
Non -Store Retailers
Foodservlce & Drinking Places
Auto and Other Vehicle Dealers (b)
Gasoline Stations
Total for all Categories with Leakage
Balance of Trade
$1,909,181
$2,139,498
$9,961,861
$12,300,762
$5,828.406
$4,059,549
$1,681,073
$12,328,777
$2,102,188
$5,945,875
$8,546,774
$12,768,313
$10736,631
$91,630,623
$6,432,410
$7,205,633
$34,031,623
$39,428,978
$17,935,654
$13,520,214
$5,773,908
$40,402,686
$7,098,387
$19,511,659
$28,744,303
$42,778,609
$34,993,001
$302,227,522
$31,654,069
$34,406,838
$160,407,443
$176,207,285
$80,470,889
$64,867,151
$28,435,911
$187,506,546
$32,955,441
$91,315,243
$134,674,518
$204,243,214
$153,981,955
$1,400,772,954
$313
$351
$1,635
$2,019
$957
$666
$276
$2,023
$345
$976
$1,403
$2,096
$1,762
$340
$381
$1,798
$2,083
$947
$714
$305
$2,134
$375
$1,031
$1,518
$2,260
$1,849
$392
$426
$1,986
$2,182
$997
$803
$352
$2,322
$408
$1,131
$1,668
$2,529
$1,907
$5,128,404
$748,237
$15,618,886
$27,692,916
$3,207,312
$1,286,285
$2,289,963
$15,60070
$2,348,751
$21,426,560
$9,115,231
$5,975,871
$7,553,467
$1
$120,382,002
$3,777,550
$7,873,072
$2,893,346
$53,633,618
$40,763,422
$5,123,406
$2,089,703
$6,078,474
$21,63901
$4,823,483
$98,821,174
$15,142,883
$13,512,228
$27,723,520
$207,'189 760
$303,915,760
$26,911,385
$8,703,804
$129,130,922
$129,709,630
$31,325,869
$7,261,798
$13,599,301
$65,887,651
$10,708,447
$127,756,698
$68,222,521
$62,030,545
$150,480,303
$1
$838,625,086
$3,219,223
($1,391,261)
$5,657,025
$15,392,154
($2,621,094)
($2,773,264)
$608,890
$3,277,893
$246,563
$15,480,685
$568,457
($6,792,442)
($3,183,164)
($
$28,751,379
$1,440,662
($4,312,287)
$19,601,995
$1,354,444
($12,812,248)
($11 430,511)
$304,566
($18,762,805)
($2,274,904)
$79,309,515
($13,601,420)
($29,266,381)
($7,269,481)
($1
$1,688,238
($4,742,684)
($25,703,034)
($31,276,521)
($46,497,655)
($49,145,020)
($57,605,353)
($14,836,610)
(8121 818,895)
($22,246,994)
$36,441,455
($66,451,997)
($142,212,669)
($3,501,652)
($5
($562,147,868)
Notes: defined (a) Radii udes auto a d othertmotor veh des.of Hill Street and Cornelius Street as the center point. See on
Sources: Ciar:tas, 2009; DCRP, PLAN 773, 2009.
Add! 10na wp ---
Total
able 15:_ xtsting
Estimated Additional Supportable
No, RetA
Sales Per Supportable
Square Retail Sales Square Feet Adjust Squares
S�
Retail ,,
maned Squaw
-
--
0
category
-
$189
0
0
0
hvo Mile R�dms (d) �
$1,061,714
$361
0
3,310
Automotive Supply Stores
$3,219,223
2,562
2,979
0
Furniture & Home Furnishings Stores
($1.391,261)
$543
0
0
0
Appliances Stores
Electronics &App
Equip Stores
$5,657,025
$425
$420
0
0
6489
7,210
Building Material, Garden
$16,392,154
$470
5,581
12,657
Food & Beverage Stores
($2,621,094)
$283
9,804
11,400
0
Health &Personal Care Stores
($p 773,264)
0
0
0
Clothing & Clothing Accessories Stores
$608,890
$242
0
0
0
Gds, Hobby, Book, Music Stores
$3,277,593
$246
0
0
n.a.
General Merchandise Stores
General
$246,563
$372
0 y.
n.a.
0
Miscellaneous Store Retailers
$15, 480,685
Oa.
$418
0
Non -Store Retailers
$568,457
17,947
Foodservice & Drinking Places
(
_
Total for all Categories with Leakage
-
-
_'-
3,643
4,047
Five Mile Radius (d) -
($592 907)
$189
3,133
0
0
0
10,260
i Stores
Automotive Supply
$1,440,662
$381
7,042
9,234
0
Furniture & Home Furnishings Stores
($q 312 287)
$543
0
0
0
Appliances Stores
Electronics & App i Stores
Equip
$t9' 601 995
$425
$420
0
0
31,719
35,244
Building Material, Garden
$1,354,444
$470
27 279
46,989
52,210
Food & Beverage Stores
($12,812,248)
$283
40,410
0
Health & Personal Care Stores
Accessories Stores
($11,430,511)
$242
0
0
88.581
98,423
Clothing & Clothing
Sperling Gds, Hobby, Book, Music Stores
$304,566
($18,762,805)
$246
76,180
6,115
7 110
7 gpt
General Merchandise Stores
($2,274,904)
$372
n.a.
n.a.
n.a.
Miscellaneous Store Retailers
$79 309,515
n.18
$418
32,549
Non -Store Retailers
(513,601420)
--_11
193,607
225,124
Foodservice & BerikIng Places
---- -� )
($63,787,082)
Total for all Categories with Leakage
-
78,334
87,037
;Ten Mlle Radius (d)
($12,750,239)
$189
67 367
13,129
15,286
16,962
61,157
Automotive Supply Stores
Stores
($4,742,684)
$361
$543
47 335
55,041
94,982
Furniture & Home Furnishings
($25,703,034)
$425
73,516
85,484
143,158
Electronics & Appliances Stores
Equip Stores
($31,276,521)
$420
110,804
126,642
121,668
135,187
Building Material, Garden
($46,497,655)
$470
104,634
263,116
Food &Beverage Stores
($49,145,020)
$283
203,652
236,805
79,283
Health &Personal Care Stores
Stores
($57,605 353j
$242
61,365
71 355
637,971
Clothing & Clothing Accessories
Sporting Gds, Hobby, Book, Music Stores
($14 836,810)
($121 518 895)
$248
493,790
59,800
574,174
69,535
77,262
General Merchandise Stores
($22,246,994)
$372
- 0'a'
n.a.
n.a.
205,459
Miscellaneous Store Retailers
$36,441,455
n.a.
$418
159,025
184,913
Non -Store Retailers
($66451 997)
��-
1 $84,417
Foodserv(ice & Drinking Places
($4
t I for all Categories with Leakage
To a
Notes:
(a} Since Auto and Other Vehicle Dealers, and Gasoline Stations utilize per acre sales data, They have been excluded from this
portion of the analysis.
(b) Adjustment to account for an additional 14 percent for nonareol?iance els @usiness and personal services).
(c) Includes adjustment to account for a ten percent vacancy
(d) Radii are defined using the intersection of Hill Street and Cornelius Street as the conic, 009; DCRP, PLAN r773, 2009details.
Sources: Urban Land Institute, Dollars and Cents of Shopping Centers, 2007; Ciadlas,
ectedlne[e @sew �� ^ -_ ' - - --
fal3jQ16: PlOj, _ -
Additional Retail Space
Estimated
Additional Retail Demand
2029 (Square Feet)
per Capita
Demand 2029 (Dollars) LowLoyv ES Hit Est.
Hgh ESL (d)
Retail ures
Expendit�
2009 Lower
s
Category (b)
-r.
�
-
$1,906,736
6,826
10.071
Fjvo Mlle Radius i _
$217
$1,291.864
$2,753.320
51166
7,622
Stores
$313
$1,866,034
$3,085471
3,851
5,682
furniture &Home Furnishings Stores
Furniture Home
$351
$2,091,746
$14,366,470
22886
33,769
Electronics& APPllanoes Stores
$1,635
$9,736,724
$17,739,510
28,650
42,273
Material, Garden Equip Stores
$2,019
$12,022,766
$8405,419
12,129
17,896
Food &Beverage Stores
Food
$957
$5,696.685
$5,854,467
14,027
20,697
Health &Personal Care Stores
$000
$3,967,804
$2 424.355
6,027
10,027
Clothing & Clothing Accessories Slaves
$276
$1.643,081
$17,779,911
48,925
72.189
Spo,Ong Gds. Hobby, Book, Music Stores
$2,023
$12,050,148
$3'031.665
5,523
8.149
General Merchandise Stores
$345
$2,054679
$8,574,827
0
0
Miscellaneous Store Retailers
$976
$5,811,499
$12,325,706
19.997
29.406
Non-store Retailers
81,403
§8,353,816
-___
$9�
174,770
257,872
Foodservice &Drinking Places
$66,586,044
T,let Projected Demand Increase
203,221
299,851
225,801
333,168
,;114% nomretail adjustment (square feet)(e)
wt 10% vacancy adjustment (square feet) if)
`Five Mile Radius _ � _
$231
$4,922,728
$6,302,842
$9,276,482
26,010
20056
33,302
25679
Automotive Supply Scorres es
Syg
97.245,239
$10.381.584
14,947
19.137
Furniture& Home Furnishings Slums
$301
$8.116,170
$49,07$610
90100
115,360
Electronics& Appliances Stores
$1798
$38,332,017
$56,862,390
105,832
135,503
Building Material, Gordon Equip Stores
$2,083
$44.411,407
$25,865.853
43,012
55.071
Food & Beverage Stores
$947
$20,202,087
$19,498,139
53030
68,932
Heal UBPersonal Care Stores
$714
$15,228,691
$8,326,825
26,899
34,440
Clothing& Clothing Accessories Staves
$305
$6.503,528
$58,266,621
184769
236,571
Sporting Gds, Hobby, Book. Music Stores
$2134
$45,508,158
$10,236,919
21 492
27.517
General Merchandise Stores
$375
$7,995,372
$20130 685
0
0
Miscellaneous Stave Retailers
$1,031
$21.877.243
$47,453,518
77,480
99.202
Non -Store Retailers
$1,518
$32,376,567
$ 323.698,466
664,435
850,774
Foodsenrice &Drinking Places
$26�
Total Projected Demand Increase
772 599
989,202
658,444
1,099,113
w144% non - retail adjustment(squafet)(0
(square feet) ( f)
-
-.._
,q 10% vacancy adjustment
Ten Mee RadlpS _ -
$243
$25.616,884
$28,333,074
$45,649.827
135,349
114,253
149,766
126,368
Automob ve Supply Stores
$392
947,273,547
$49,619,725
82620
91.381
Furniture & Home Furnishings Stores
$426
$44.862,859
$231,331,146
491,622
543,749
Electronics & Appliances Stores
$1,986
$209,154,255
$254.110.844
547,508
605,561
Building Material, Garden Equip Stores
$2102
$229.755,569
$$93.540,888
223,396
247.083
Fund &Beverage Stores
$997
$104,925,485
$83.54T981
299015
330,720
Health & Personal Care Stores
$803
$84,579,870
270,662
153,354
169,615
Clothing& Clothing Accessories Staves
$352
§37.077.405
$ 2
992657
1,097,910
Sporting Gds, Hobby, Book. Music Stores
$2322
§244,488,605
$47,528,597
115,505
127753
General Stores
$408
$42,970,392
$ 731,690,023
0
0
Miscellaneous Store Retailers -
sous tore
$1431
$719,065,370
$794,220.480
420,228
464.785
Non -Store Retailers
$7.668
$175,601,256
$1,503,507,376
3,575,509
3,954,624
Foodservilm& Drinking Places
$J,369,371,492
Total Projected Demand Increase
4,757,568
4,598,400
(square feel) (e)
4,679,520
6,109,334
wt 14% non - retail adjustment
(square feet) (f)
,,110% vacancy adjustment
t 2009;
Urban Land lnsOlule,
Dollars and Centers
of Shopping
rilas,2009;D"of State Budget and Managemen
Sources: Cla off"
PLAN 773, 2009.
Centers, 2007; DCRP,
Noles:
(a) Calculated based on 2009 estimated wnsumer expenditures reported in Table 40 and population projections reported in Table 7.
(b) ExcludIs Auto and Other Vehicle Deafens and Gasoline Stations
Los, - growth estimates for 2029 are based on the average annual population gra�Ahmte in each area behveen 2000 and 2009,as
reported by Cla[Itas. Durham, Orange Td -County
(d) High- ,u,-Ah estimates a re based on the average annual population growth rate of the Namance,
region, as reported by the OSBM.
(e) Adjustmant to account for an additional 14 percent for non - retail Outlets (business and personal services).
(p Adjustment to account foralen percent vacancy allowance.
Urban Land Institute, Dollars and Centers of Stropping
Sources: Clardas, 2009: Office of Slate Budget and Idanagemenl, 20(19
Centers, 2007: DCRP, PLAN 773, 2009.
Business and Employment Development Impacts retail
rent generating potential of the above
leasabler a ea
per firm employment and g' supported asa through
To estimate the
business and 19r employment
P jobs that might be
estimates, Tables 17,
figures to derive the approximate number of businesses and j
retail demand.
capture of existing and projected future
Average Per Firm Employment and Wages Business Patterns, showrrest faros ae i tithe
rent data from the 2007 County The larg
Based on state employ e from six to as many as 48 employees. followed by food and beverage
establishments have, on average, on averag , 1 g and
laces (19); automotive and other `erl dealers
u Ir ras(gasolhre
general merchandise stores sector with la employees Other retail categories
stores (21); food service and drinking p
building material and garden equipment stores (16). Jo
Pei' establishment, with an average
stations and miscellaneous store retailers yield many fewer j P
of 6. automotive and other vehicle
e annual wage basis,
Per ear. Other high - paying industries include
when comparing retail categories ones average 500); furniture
dealers offer the highest average wages at $41,300 p Y
arden equipment stores ($28, Some of the
building material and g 1 stores ($25,200).
non -store retailers ($38,200); and automotive supply laces, averaging only $12,500
and home furnishings stores ($25,900); 400 per year); and food and beverage
lowest paying retail industries i book and mi sicrstores ($1r4krng p food
per year; sporting goods, bobby,
stores ($15,000).
jobs that might be supported through
Business Development and, ob Creation
leakage, based on national average gross leasable area, and state average
Table 18 outlines the estimated abased n fines and total) potentially support
ures, the two-mile radius Phrrpacts are in the
capture of existing titan meet- largest emp Y
employment per establishment. Using these fig obs. The lu'g obs created between
with a total of roughly 33 new j generating
UP to five new retail establishments and category new J largest job g
Clothing and Clothing Accessories y 4 000 square feet each. The secon obsreat d in one new
three new establishments of roughly 4'liance Stores sector with 12 new j category there is
potential is in the Electronics and App
establislu lent of around 2,400 square feet. In the Health and Personal Care Stores or
jobs. By applying the
slightly more than half of the usual floor o seven more j alley store of aroun
sufficient demand for slig Y provide up ment generation by
7,000 square feet could be established, this could p
average annual wages described in Table 17 to the above estimates of employ
retail category, these retail developments could create a total added value of one million dollars
annually.
Optimistically, estimates of business and job development potential in the five -mile radius s ow
42
sufficient demand to accommodate around 61 new businesses, creating nearly 1,300 new jobs. The
greatest potential is in General Merchandise Stores. Estimates show demand for 12 new stores,
creating almost 600 3 restaurants, tbaasl andncafess demand ich could offer eluploymentdtoo over 4301aces v jobs.
Sector for
people.
Utilizing the retail demand projections describe earlier, Table 19 estimates that potential for
generate between 745 and nearly
between 39 and 58 new, retail establishments in the hvo -mile radius by
2029. Using average
gains are in the general merchandise stores category.
between 39 per establishment figures, these new firms could g
1,100 new jobs. The largest potential g nine new
Averaging 8,000 square feet in size, the town could possibly roughly 300ntoe435 new, jobs. The
stores of this type in the two -mile radius by 2029, creating roug )aces category. These
generating potential is in the food service and drinking p e Based on retail feet second largest job g
establishments are roughly 1,800 square id absorb between i1 and 16 neH�establishmentsnoi�gton
demand projections, this category
garden equipment stores, averaging 4,100 square feet and 16
projected time horizon, creating behveen 200 and 300 new jobs. The third highest �
category is building materials and g generating between 88 and 130
employees. Projected demand could absorb six to eight new stores, g
new jobs.
By comparison, tobsf1The totaladiage absorb
this job creation are estimaed'at between $52 the
2,800 to 3,60
million and General Business
and Drinking Places, and Building materials. n For
categories potential in specific retail categories, please refer to
further details regarding the business and job
Table 19.
43
Retail
Cate ory
Automotive Supply Stores
Furniture & Home Furnishings Stores
Electronics &Appliances Stores
Building Material, Garden Equip Stores
Food & Beverage Stores
Health & Personal Care Stores
Clothing & Clothing Accessories Stores
Sporting Gds, Hobby, Book, Music Stores
General Merchandise Stores
Miscellaneous Store Retailers
N,,-Store Retailers
IFoodservice & Drinking Places
Auto and Other Vehicle Dealers (b)
Gasoline Stations
Total All Retail Categories
Total
Employment
19,622
12,480
47,723
78,144
33,109
47,818
15,849
91,838
22,976
13,492
301,333
45,017
29.508
776,198
Total
Establishments
2,142
2,390
1,455
3,034
3,773
2,752
4,636
1,797
1,904
3,675
1,472
16,232
2,548
4,751
-�
Employment
Per Establishment
B
8
9
16
21
12
10
9
48
6
9
19
18
6
15
payroll
S435 625,000
$508,233,000
$293,285,000
$1,359,655,000
$1,262,020,000
$942,684,000
$688,405,000
$237,486,000
$1,737,169,000
$432,626,000
$516,033,000
$3,773,448,000
$1,858,674,000
$498,035,000
--- --- $14
Notes:
(a) Derived using total annual payroll, total employment, and assuming a standard 40 hour work week (i.e. 2,080 hours per year).
(b) Includes auto and other motor vehicles.
Sources: 2007 County Business Patterns, 2009; DCRP, PLAN 773, 2009.
Annual•Wage
$25,901
$23,500
$28,491
$16,150
$28,472
$14,396
$14,934
$18,916
$18,629
$38,247
$12,523
$41,268
$16,878
$18,737
Hourly -wage for
$12
$11
$14
$8
$14
$7
$7
$9
$9
$18
$6
$20
$8
Existing Supportable
Retail Ze.t 1h1
,A , ,_...t,. _.
Auuj o omo tiv e a Supply Stores
0
Furniture & Home Furnishings Stores
3,310
Electronics & Appliances Stores
0
Building Material, Garden Equip Stores
0
Food & Beverage Stores
7,210
Health & Personal Care Stores
12,667
Clothing & Clothing Accessories Stores
0
Sporting Gds, Hobby, Book, Music Stores
0
General Merchandise Stores
0
Miscellaneous Store Retailers
0
Foodrvice & Drinking Places
23,187
Total Alsel Retail Categories
0
Automotive Supply
Furniture & Home Furnishings Stores
Electronics & Appliances Stores
Building Material, Garden Equip Stores
Food & Beverage Stores
Health & Personal Care Stores
Clothing & Clothing Accessories
Music Stores
Sporting Gds, Hobby, ce
General Merchandise Stores
Miscellaneous Store Retailers
Places
0
10,260
0
0
35,244
52,210
0
98,423
7,901
42,053
138
Ave. Gross
4,214
2,400
4,100
32,020
12,544
4,000
1,700
8,000
2,050
1,799
4,214
2,400
4,100
32,020
12,544
4,000
1,700
8,000
2,050
1,799
Estimated Number
of Supportable
0
1
0
0
0.6
3
0
0
0
0
Average Total
Employment Per Estimated
BStablish
Employment
o_ y— yment
8 0
9 12
16 0
21 0
12 7
10 33
9 0
48 0
6 0
19
51
Foodservice & Dnnkm9 250,
Total All Retail Categories
Sources: Urban Land Institute, Dollars and Cents of Shopping Centers, 2007; Claritas, 2009; 2007 County Business Patterns, 2009; DCRP, PLAN 773, 200 .
8
8
0
0
9
37
4
16
0
0
21
0
12
34
3
10
135
13
9
0
0
48
593
12
6
24
4
19
434
23
Foodservice & Dnnkm9 250,
Total All Retail Categories
Sources: Urban Land Institute, Dollars and Cents of Shopping Centers, 2007; Claritas, 2009; 2007 County Business Patterns, 2009; DCRP, PLAN 773, 200 .
-..,
Business and
Job Deyg;,opme_,_,;,. .. ' �
Average
Total
a61e 18 n Estimated
Estimated Number
Employment Per
Estimated
Supportable
Ave. Gross
Of Supportable
Establishments (d)
Establishment (e)
Employment
-
Retail
Existing
Square Peet(b)
Leasable Area (c)
�_— ._-- ------ .'_"_,----
----." .
.. .....
,, ` -'.,
8
33
Category (a)
, :
4,032
.......
2�
8
Tort= Milo,Radius,, ,. - , .
'. 87,037
4,214
4
g
219
Au tomotive Supply Stores
16,962
2
25
11
364
Furniture & Home Furnishings Stores
61,1 57
,400
4,100
23
21
93
Electronics & Appliances Stores
94,982
32,020
4
12
130
Building Material, Garden Equip Stores
143,158
12,544
11
10
678
Food & Beverage Stores
13511 87
4, 000
66
9
411
Health & Personal Care Stores
263,116
1,700
47
48
3,847
Clothing &Clothing Accessories Stores
79,283
8,000
80
6
236
Sporting Gds, Hobby, Book, Music Stores
637,971
2 050
38
19
X2,1_20
General Merchandise Stores
77,262
1,799
114
8,305
Miscellaneous Store Retailers
205,459
Foodservic' & Drinking Places
1,801,573
Total All Retail categories
Notes: ck of
(b) Excludes includes 14 non-store clue
adjustment and ten percent dvacanucy adjustment average sales volume.
(c) Based on national average figures for the entire NAICS category.
(d) Figures are rounded to the nearest whole number. the t PLAN 773, 2009.
(e) Based on total employment and total establishment figures 2007f Clar tasa2009; 2007 County Business Patterns, 2009; DCRP,
Sources: Urban Land Institute, Dollars and Cents of Shopping Centers,
Retail
Pwm 11-11 .''_.. .
Furniture & Home Fumes Stores of res
Electronics & App'
Building Material, Garden Equip Stores
Food & Beverage Stores
Health & Person al Care Stores
Clothing & Clothing Accessories Stores
Sporting Gds, Hobby, Book, Music Stores
General Merchandise Stores
Miscellaneous Store Retailers
Food service &Drinking Places
Total All Retail Categories
Additional Recall Space
5,156
3,851
22,886
28,650
12,129
14,027
6,796
48,925
5,523
19,991
174,770
Automotive Supply Stores
20,056
Furniture & Home Fumishin9s Stores
14,947
Electronics & Appliances Stores
Stores
90,100
Building Material, Garden Equip
105,832
Food & Beverage Stores
43,012
Health & Personal Care Stores
53,838
Clothing & Clothing Accessories Stores
Stores
26,899
Sporting Gds, Hobby, Book, Music
184,769
General Merchandise Stores
21,492
Miscellaneous Store Retailers
T7,480
Foodservice & Drinking Places
--�-- 66943'5
Total All Rot all Categories
g
7,622
5,682
33,769
42,273
17,896
20,697
10,027
72,189
8,149
29,496
Estimated Number of
AVe.G(ess
4,U3Z
4214
2
4,214
2
2
2,400
6
8
4,100
1
4
32,020
1
1
12,544
135,503
5
4,000
4
6
700
6
g
8,000
3
4
2,050
34,440
6
1,799
13
236,571
33,302
4214
5
8
25,679
2,400
6
28
19,137
4,100
22
4
5,360
32,020
3
4
135,503
12.544
3
17
55,071
4,000
13
20
66,932
1,700
16
30
34,440
8,000
23
13
236,571
2,050
10
55
27,517
,799
43
�1
195
99,202
5,985
62
1,700
124
137
6
352
Automofv? �' "`
'...liC CiCYCC
114,253
15
S10
Building Material, Garden Equip Stores
5471508
Food & Beverage Stores
223,396
Health & Personal Care Stores
299,015
Clothing & Clothing Accessories Stores
153,354
Sporting Gds, Hobby, Book, Music Stores
992,657
General Merchandise Stores
115,505
Miscellaneous Store Retailers
420,228
Total Estimated
Average Employment
Employment Per cct
8
70
15
8
53
20
9
14
130
16
89 27
Be
21
t2
17
12
36
53
10
40
52
9
295 435
1,426
48
t7
25
6
10
304
9
� --
2,857
75
8
39
50
8
53
68
149,700
368
27
16
9
Be
21
47
53
2
16
178
10
40
179
9
14
1,426
4
66
84
6
5
10
1,024
9
� --
2,857
75
. ,
_.
... 34
37
8
223
149,700
41032
27
30
9
295
126.368
4,214
34
38
16
1,986
n,
2.400
x..
605,561
'S °pGU
18
20
10
771
247,083
12,544
75
83
9
796
330,720
4,000
90
100
48
5,985
169,615
1,700
124
137
6
352
1,097,910
8,000
2450
56
62
19 --
4,336
15.484
15,484
127,753
,799
234
�
917
464,785
Food service & Drinking Places 3 3,954,624
Total All Retail Categories
Sources: Urban land Institute, Dollars and Cents of Shopping Censers, 2009; Claritas, 2009; 2007 County Business Patterns, 2009, DCRP, PLAN 773, 2009.
246
327
2,066
,n.
853
880
6,620
390
4,796
Notes: adjustment. or
tj
(a) Includes a 14 percent non - retail adjustment antl ten percent vacancy 1
(b) Excludes non -store retailers due to lack of information regarding building size and average sales volume.
(c) Low - growth estimates for r u are based on the average annual population growth ra <e In each area between 2000 and 2009, as reported by Claritas.
(d) High-growth estimates are based on the average annual population growth rate of the Alamance, Durham. Orange Tri- County region, as reported by the OSBM.
(a), F gores arearoun a forthe nearestfwhole numberAlCS cate9orY
(g) Based on total employment and total establishment figures for the State of North Carolina.
Sources: Urban Land Institute, Dollars and Gents of Shopping Centers, 2009; Clantas, 2009; 2007 County Business Patterns, 2D09; DCRP, PLAN 773, 2009.
Sales Tax Revenue Generation erme that eneratedthrough
Tables 20 and 21 report estimates of the potential
en d sales tax rev tail demand, rbased ongenerated
009 county and
capture of existing retail leakage, and prof artment of Revenue, sales of personal
state sales tax rates. According to the North Carolina Dep Potential of the two-mile
property are subject to state sales tax at a rate of 5.75 percent, and county
g pales tax at a rate of two
approximately $1.3 million. By comparison, the five -mile
percent. Based on this analysis, the total additional sales tax -g
radius area, based on existing leakage, is app' venues
radius exhibits potential sales tax re 9 sales t $7.7 generation based on then retail demand estimates
million. Table 21 reports projected
discussed earlier. Based on these calculations, the two -toile radius shows a potential increase s,
sale tax revenue bs 2029 of bet increase ofi$26.4anullion to t$30.9 mill on. Finallye the ten mile
by contrast rep eueration of between $141.5 million and
radius exhibits potential projected sales tax revenue g
$143.3 million.
,3
Isst eshAccessedUNo enbert20,2009nn hnP� me.cmtilt xesl Tle�li npnodce 100952 �df.Rate CrmrSe
49
Sales Tax Rates, 2009 2 W %
Orange County 5.75%
North Carolina
Sales Tax Generation
State of
Existing Leak
From age
2009 Retail
County a) State (b) Total
Sales
Leakage
Retail Category
-�'
_ -
$0
Two Milo Radius (c} _ -
- $0
$0
50
Automotive Stores
Stores
§0
$0
$0
$79,998
$107.823
Home Furnishings
Furniture & HOMO
($1397,2671
527,825
q0
Electronics & Appliances Stores
$0
$0
$0
$0
Building Material, Garden Equip Stores
$0
$p
$203,135
Food & Beverage Stores
($2 621 084)
$52,422
$150,713
$158.4$0
$214,9
Health& Personal Care Stores
($2773,264)
$55,465
$80
Clothing & Clothing Accessories Stores
$0
$p
$0
$0
Sporting Gds, Hobby. Book, Music Stores
$0
§0
General Merchandise Stores
$p
$0
$0
$0
Miscellaneous Store Retailers
$0
$0
$0
$0
$0
Non -Store Retailers
$0
$0
$390,565
$526,414
Foods ervice & Drinking Places
($6792442)
$135,849
$246,695
Auto and Other Vehicle Dealers(d)
($3,183,164)
$63.663
$183,032
$963770
51298.995
Gasoline Stations,
§
§335225
Total for all Categories wlih Leakage
MilaRadius' Soi - -
(5692,907)
$71.858
$34.092
$45,950
$0
,Fiva
Automotive Supply Stores
Stores
$0
$0
$247'0$77
$334,202
Furniture& Home Furnishings
($4312287)
$66,246
$0
Electronic s& Appliances Stores
$0
$0
$0
$0
Building Material, Garden Equip Stores
$0
$0
§992,949
Food& Stores
($12,812,248)
$256,245
$736,704
5885,865
Health &Personal Care Stores
persona
($17'430' 571
§228,610
$657.254
57,254
$0
Clothing & Clothing Accessories Stores
§a
$0
$1,454.117
Sporting Gds, Hobby, Book, Music Stores
($18,762,805)
$375,256
$1,076,861
$130,8570
$176,3050
General Merchandise Stores
($2274004)
$45,498
Miscellaneous Store Retailers
$0
$0
$782,082
$1,054.110
Non -Store Retailers
($13,601,420)
$272,028
$1,682,817
$$568,745
Foodservice &Drinking Places
(d)
($29.266,381)
$585,326
$417,995
$563.385
Auto and Other Vehicle Dealers
($7,269,481)
$145,390
$5.768• 56y
$7775028
Gasoline Siafions
2
($
$2,W6,459
Total for all Categories with Leakage
Ten Mile Radius(c}
($12,750,239)
$255,005
$733,739
$272,704
9988,144
§367,558
Automotive Supply Stores
($4,742,684)
$94.854
$1,991.985
Furniture& Home Furnishings Stores
($25,703,034)
$514,061
$1.477,924
$1,796,400
$2,423,930
Electronics& Appliances Stores
$31.276,521)
$625,530
$3.603•`'68
Building Material, Garden Equip Stores
($46,497,655)
$929,953
$2,673,615
$3,808,739
Food &Beverage Stores
($49,145,020)
$982,900
$2,825,839
$3,312,308
Heal0r & Personal Care Stores
($ Sy 605,353)
$1.152'107
53,105
$1,149,837
Clothing& Clothing Accessories Stores
Stores
$296,732
$e
Sporting Gds, Hobby, Book, Music
($121 618 8995)
$2,432,37B
$1.279.202
$1724,142
General Merchandise Stores
($22,246,994)
4,940
$0
$0
Miscellaneous Store Retailers
$0
$0
$3,820,990
§5,150,030
Non-Store Retailers
($66,451,997)
$J,329,040
$8,177,228
$11.271,378
Foodservice & Drinking Places
(d)
($142212,669)
$2,844.253
$201,345
$
Auto and Other Vehicle Dealers
f$3,601,652).
$70,033
$34.418 886
$46,390.673
Gasol'me Stations
$5
911.971,766
Total for all Categories wish Leakage
Notes:
(a) Figures are based on he County sales lax rate of 2 5 pert
(b) Figures are based on the State sales tax rate of reef percent.
(c) Radii are defined using the intersection of Hill Street and Cornelius Street as the center point. See Figure
1 for details.
(d) Includes auto and other motor vehicles.
Sources: Ciamas, 2009; North Carolina Department of Revenue, 2009: DCRP, PLAN 773, 2009.
Sales Tax Rates, 2009 2.00%
Orange County 5.75%
State of North Carolina Projected Sales Tax Generation (a) High Est.
Additional Retail Low Est. State
------ -�-'_"'_ County
Low tsc tvr --
Retail
$1906,136 $25,837
Two,Mile Fiapplyd), I - "`$1,291,864 $37,321
Automotive
Supply Stores $1,$66,034 $2,753,320
Furniture $41,823
iture &Home Furnishings Stores $2,091,146 $134,734
Electronics & Appliances Stores $9736,724 $14,366,470 $240455
Building Material, Garden Equip Stores $12022766 $17739,510 $113,934
Food &Beverage Stores $5,696,685 $8,405,419
654,467 879,356
$5,
Health &Personal Care Stores $3,967,804 $32,862
Clothing & Clothing Accessories Stores $1'643'081 $2,424,355 $241 003
Sporting Gds, Hobby, Book, Music Stores $12,050,148 $17,779,911 $41,094
General Merchandise Stores $2,054,679 $3,031,665 116,230
Miscellaneous Store Retailers $5,811,499 $8,574,827 $
$8,353,618 $12,325,706 $167,072
NonStore Retailers $249,595
Foodservice &Drinking Places $12478 750 816,413,787 $209.880
Auto and Other Vehicle Dealers (e) $10.493,984 $1� �y6
Gasoline Stations $g ----'y 559,77$ $132,144,847 $1,791,
Total for all Categories
m.
$6302,642 $98,455
r
Fiv.0m1o,I Radrgs Zd) , - `" $4922,728 $144,905
Automotive Supply Stores s $7,245,239 $9,276,482
$8,116,170 $10,391,584 $162,323
Furniture &Home Fumishings Stores gqg 078 610 $766,640
Electronics & Appliances Stores $35,332,017 888 P4g
Building Material, Garden Equip Stores $qq 411,407 $56,862,390 $
$20,202, $404,042
087 $25,865,853
Food &Beverage Stores $304,574
Health & Personal Care Stores $16,228,691 $19,498,139 $130,071
Clothing & Clothing Accessories Stores $6,503,526 $8,326,825 $910,163
Sporting Gds, Hobby, Book, Music Stores $45,508.158 $58,266,621 $159,907
General Merchandise Stores $7 995,372 $10,236,919 $
$28,138,685 $439,545
Miscellaneous Store Retailers $21,977,243 $41,453,516 $647,531
NonStore Retailers $32,376,567 $963,686
Foodservice & Drinking Places $48 184,313 $61,693,051
Auto and Other Vehicle Dealers (e) $50 $788,298
,465,059 _,_
$39,414,880 �- $,0$,368
Gasoline Stations 834 $435,856,577 $6
Total for all Categories with Leakage
9 Sources: Clantes, 2009; North Carolina Department of Revenue, 2009; DCRP, PLAN 773, 2009.
$74,282
$107,297
$120,241
$559,862
$691,309
$327,559
$228,149
$94,477
$692,883
$116,144
$334,161
$480,333
$717,586
$603,404
$5,149,687
5283,057'
$416,601
$466,680
$2,204,091
$2,553,656
$1,161,620
$875,650
$373,953
$2,616,719
$459,734
$1,263,691
$1,861,653
$2,770,598
$2,266,356
$1- g 058
$100,119 $3a1dJ $213,382
$144,618
$55,066 $15 $1778,,316 415 $230 124
$162,064 $61,709 $1113,401
8754,596 $287,329 $826,072
$931,764 $354,790 $1,020,022 $1,374,812
$483,312 $6520
$441,493 $166,108 $336,632 $4533 7,721
8301,505 $117,089 $139,400 $187,887
$127,339 $48,487 022,345 $1,377,943
$933,886 $ $1,022,345
$174,321 $234,954
$450,391 $117171,487
$159238 $493,053 $664,549
$955,242
$647,405 $246,514 $708,728 $1,427,068
$967,181 $368,276 $1,058,793 $1,199,995
$309,676 $890,319
8813,284 642,897
$09 -- 4- 0,883 $ $ 810,241,226
$362,413 " $488,470
'$361,511 $126,057 $533,398 $718,927
$561,506 $185,530 $537516 $805,348
,
$629,003 $207,832 83,803,592
$3269,587 $
$2,970,731 $981,572 $3,822,020 4406,835
$3,441,884 $1,137,248
$1,565,662 $517,317 $1,487,267 $2,004,604
$1,180,224 $389,963 §1$478792 $1$645,329
$504,023 $166,537 $4,515,663
$3,526,882 $1,165,332 $3,350,331 $783,361
$619,641 $204,738 $588,623 $2,180,748
$1,703,236 $562,774 $1,617,974 $3,212,648
$2,509,184 $829,070 $2,383,577 $4,781,211
$3,734,284 $1,233,861 $3,547,350
$3,054,653 $1,009,301 $2,901,741 $3,911,042
$2 426 $8,717,
32 $2 $3
Additional Retail
Retail Category =- _- ' --== --
TenMileRadius(d).; j: $25,618,884
Automotive Supply Stores $qt 273,541
Furniture & Home Furnishings Stores $44,862,859
Electronics & Appliances Stores $209,154.255
Building Material, Garden Equip Stores $229,755,569
Food & Beverage Stores $104,925,485
Health & Personal Care Stores $84,579,870
Clothing & Clothing AcB ss Musb Stores $37,077,405
Sporting Gds, Hobby, $244,488,605
General Merchandise Stores $42,970,392
Miscellaneous Store Retailers $119,065,370
NonStore Retailers $175,601,256
Foodservice & Drinking Places $266,311,441
Auto and Other Vehicle Dealers (e) $200,776,102
Gasoline Stations $1 82 ----5 45g Og4
Total for all Categories with Leakage
$28,3331074
$45,649,827
$49,619,725
$231,331,146
$254,116,844
$116,050,868
$93,547,981
$41,008,770
$270,412,042
$47,526,597
$131,690,023
$194,220,480
$294,548,781
$222,064,646
$2,02
$512,338
$825,471
$897,257
$4,163,085
$4,595,111
$2,098,510
$1,691,597
$741,548
$4,889,772
$859,408
$2,381,307
$3,512,025
$5,326,229
$4,015,522
$36,529,181
$1,472,971 �51,985,308
$2,373,229 $3,198,699
$2579,614 $3,476,872
$12,026,370 $16,209,455
$13,210,945 $17,806,057
$6,033,215 $81131,725
$4,863,343 $6,554,940
$2,131,951 $2,873,499
$14,058,095 $18,947,867
$2,470,798 $3,330,205
$6,846,259 $9,227,566
$10,097,072 $13,0137
$15,312,908 $20, 639,
$11544626 $15,560,148
$105,021,394 $141,550,575
$SOO,00i
$912,997
$992,395
$4,626,623
$5,082,337
$2,321,017
$1,870,960
$820,175
$5,408,241
$950,532
$2,633,800
$3,884,410
$5,890,976
$4,441,293
$40,402,416
$2,624,865 $3,537,862
$2,853,134 $3,845,529
$13,301,541 $17,928,164
$14,611,719 $19,694,055
$6,672,925 $8,993,942
$5,379,009 $7,249,968
$2,358,004 $3,178,180
$15,548,692 $20,956,933
$2,732,779 $3,683,311
$7,572,176 $10,205977
$11,167,678 $15,052,087
$16,936,555 $12,530
$12,768,717 $ 210,
$116,156,946 $156,559,362
Notes:
(a) Figures utilize 2009 sales tax rates for Orange County and the State. population growth rate in each area between 2000
, Orange Tand 2009 region, rep, rted by Claritas
by the OSBM.
(b) Low - growth estimates for 2029 are based on the average annual pop
(c) High- growth estimates are based on the average annual population growth rate of the Alamance,
(d) Radii are defined using the intersection of Hill Street and Cornelius Street as the center point. See Figure 1 for details.
(e) includes auto and other motor vehicles.
Sources: Claritas, 2009; North Carolina Department of Revenue, 2009; DCRP, PLAN 773, 2009.
Development opportunities
Planned and Proposed
d D sector developments approved of under construction In the
d Developments
le- family
Currently, there are 10 new private eels include residential units, with a total of 595 sing
Town of Hillsborough. Eight projects
square feet
units, 700 multi- family units, and 4 -9 special units. As shown i,r Table 22, there are the
commercial developments currently feet underway Hillsborough with t fal of 414,000 sq
of office, and over 163,000 square
The first ewnmereial project, Hampton Point, is largely completed wit t 55,000 square feet of retail
construction is the Forest Ridge mixed -usl development that includes
and only a handful of retail pads left available for assorted retail sho} s or fast food. The includes
es
000 square feet of retail. Tlw second smallest project is
project currently under
18,000 square feet of office and 10, 000 s(.3 ire feet of retail shops and
square feet of medical office spa( 1, The largest project is the
Oakdale Village wi South Clanton Street that will include 2 of commercial and retail
200 restaurant seats, plus 23,000 000 square .+
Waterstone development was slated to include over 73, 4 single-family waits, 399
space and nearly 384,000 square feet of
uare foot UNC hospitdalteom' g
nwlti- family units and tine one million square surgical, laboratory and
The UNC Hospital at Waterstone will provide 68 hospital beds, r
diagnostic facilities, a pharmacy, and physical and occupational therapy services. At full build -out,
the complex will include 810,000 square feet of space, including the h )spitat itself, medical office
he buildings, co pl and a central utility plant. A certificate of need has been sat nritted to the Department al
Health and a Regulation for the State of North Carolina, in accor('ance with state and federal
regulations.
gevelopment Recommendations
000 square
the two -mile radius shows a demani 1 potential for around 23,000
Based l the project team's estimates of retail development potential, as derived from existing 23 at
future projected retail leakage, otential for over 250,
however had approved 163,000 square feet of retail
square feet of new retail space, [l edTowrfive -mile radius shows p- 11, This equals
feet. As of December 2009, centers however
the south -side of Hillsboroug
development in four different shopping eared
roughly 7 times the estimated retail development potential d v,1 two-Mile radoiita. Emphasiz ng
out Orange :ounty and bey
fortunately, is that some of these projects, and the Waterstone devcl opnrent in particu a', are
to capture demand and serve customers from through
this point is the estimated 250,000 square feet of retail demand e -entir reported for the five -in
e
that con} I e absorbed though development
radius. This is roughly 1.5 t mes the amount of retail space r rently under constriction in the
meat through 2029 is projected
town, suggesting significant additional retail city
the U.S. 70 corridor. Furthermore, demand for retail de '1 'p
53
to increase by 226,000 to 333,000 square feet in the two -mile radius and 858,000 to over one
million square feet in the five -mile radius.
demographic treads as well as retail leakage data, imply that the town should
Interestingly existing existing Hillsborough town residents to support new
not rely too heavily demand from
commercial develooPthe ate, hate demaild projections
ide tion estimated range within n which future sde nand
the tri- county g' likely to experience the
might be expected to fall, in the near- tetnt�ire would mean wont tinned population decline. Combined
existing trends. In terms of population,
with lower household incomes and academic attainment, the future demand potential of the two -
mile radius will likely resemble estimates in the low- growtb scenario. However',
the almost 600
attract younger, ln ooerhighly educatedtl oluseholds into thelarea. under
If properly leveraged, aged, begin �o
demand new e a l e nr e c i
towsiide ts. For example,the Ket ion G ove resdential
an al o created
demand fromeasting
development, located between Revere Road and Cornelius Street, includes 55 new market rate
single - family residential units (only five have yet to be constructed). Thus, conune'cial
development households intlKenioV Grove maydfind a broader base of existing ppo t tl at w oulld otherwise be feasible.
54
54
Development Name
B¢Ilewe MII
Corbimon Commons
Eno Haven
Kenion Grove
Riverbend II
Wllowbend
Forest Ridge
Oakdale Village
Hampton Pointe
Waterstone
Location
202 S. Nash Street
U.S. 70 and Gwenn Road
U.S. 70 East
U.S. 70 and Revere Road
532 U.S. 70 -A
N.C. 57 at Cameron Estates
U.S. 70-A East
South Churton and Oakdale
N.C. 86 and Interstate 85
Old N.C. 68 and 1-40
Description
Renovation of historic mill
Age-rostricted housing
Affordable rental housing
Single- family housing
Single- family housing
Single- family housing
Mixed -use development
Retail shopping center
Shopping center build out
Mixed -use development
Sources: Town of Hillsborough, 2009: DCRP, PLAN 773, 2009.
Office
Retail
other
Total
Total Res. Units
Special
Sq. Ft
Sq. Ft,
sq. Ft
Acreage
Single - Family
Multi- Family
0
S�
19.8
0
104
53
9'0�
0
0
Approved
69
205
0
0
In- Progress
40'1
0
0
76
0
0
0
Under Constuction
1.52
5
0
p
0
0
Under Construction
12
p
0
0
Under Construction
85
.85
14 14
0
18,000
10,000
0
Approved
11877
23g
0
23,000
25,000
0
Approved
9.5
0
0
55,000
0
Under ConstNCtlan
58.36
0
0
280
363,868
73,432
1,058,000
Approved
337.5
262
391
409
413,868
163,432
1,058,000
Approve
609.22
595
700
Total
C®hcIusion
This report has provided a range of background information, data analysis, qualitative analysis, and
resources with the aim of informing Hillsborough's economic development strategies for the U.S.
70 /Cornelius Street corridor. Analyses have included demographic data, real estate market
conditions, retail leakage analysis, health asset mapping, and identification of development
opportunities.
This report can serve several functions. First, the data analysis provided can be used to support the
arguments for several types of development including retail, office, and health services. Second,
rces to assist in the revitalization
information provided can connect the leadership with resou
proces. Third, methods of analysis and sources of data can be replicated as a model for further
studies. Finally, this report provides several key recommendations regarding future development
and redevelopment of US 70 /Cornelius Street.
The overarching recommendation of this report is to use the data and analysis in this document to
craft a holistic economic development strategy for the Cornelius Sheet corridor. This strategy
should be consistent with the following criteria:
1) Utilize an anchor development (i.e. large commercial or institutional user) to help attract
private investment and begin to blend new commercial development with existing and
anticipated civic and residential uses.
2) Attract and retain retail dollars from within and outside the county.
3) Create jobs that provide decent wages, conditions and opportunities for workers from
Hillsborough.
4) Entrance the physical appearance, environment and current uses of the corridor.
Strategy should also be formulated with consideration for tine following key trends and conditions:
• An aging population;
• A desire for medical services in the study area, as expressed by local residents;
• The presence of considerable health assets, including training opportunities and the UNC
Hospital at Waterston;
• The sizable retail development potential in Hillsborough and Orange County, as illustrated
by the retail leakage analysis; and
• A local real estate market that is, generally, weaker than or secondary to the market in the
county and the region.
Needs identified by the community in the 2007 report included health care, retail, and services. We
56
have found evidence that these needs could be supported by Hillsborough's existing population, so
development opportunities or an
we recommend that they be considered further as individual
overall strategy are explored.
Further, we recommend that any planning for development consider how these uses can fit together
to achieve greater benefits for the corridor, town and its residents. For example, an anchoring
development, such as a health clinic, could encourage other health - related firms to locate along the
corridor — laboratories, medical supply wholesalers, or offices. Retail opportunities such as a small as
grocery and general merchandise h tores mixed-use strategy identified
thescor iidoal,l the sTown could bellsboroughdcan
an anchor use. By pursuing
help
nd continuity with do unto n Hillsborough
that 1 asetraditionally been lackingperception of safety
hr the realm of health care, there are unique models that Hillsborough could explore that would the
meet the specific needs of its population and establish cre -based t innovator
for in
ti elius
provision of health care services. Also, by pursuing a health
Street, Hillsborough would be operating based on its strengths and what it already has,
rather erslhas
with pursuing what g is lacking. More impartacula'lt, its would allow the Town to
of primary health are providers,
with its existing health care assets —p Y,
and Durham Tech --as well as the future asset of the new ONC hospital.
In conclusion, there are several options worth exploring for Cornelius Street. Because of the
historic barriers to commercial development that the corridor has faced and the development of
other commercial sites around town, future development of Cornelius Street sites should be
considered for how it can snake the corridor useful to neighborhood residents. At the sane time,
the Town of Hillsborough should continue with the plans for physical hnprovements to the
physical and pedestrian environment of Cornelius Street, as these will make the area safer and
more attractive to all residents.
57
Appendix IX. North Carolina Certified Site Program
220 1 Page
NORTH
CAROL! f 4A
TN4 8�iRlE 65 !'NOb
Table of Contents
C Department of Commerce —Certified Sites Nrogrdni
of Changes ••••
Executive Summary 9 •••••••°
Criteria......... ............................... ........... .......... ...............................
5
Process ................ .........
Re- certification ... ...............................
............. .. 7
Program Overview ......... ...............................
Program Objectives / Purpose..... ...... .........
Program History and Successes......'... ........................
$
Steering Committee. :..... ..••••••• ..::........... ...............................
Technical Review Committee ..... : ........... ........................................ ...............................
9
................................... ...............................
Program Coordinator ..... ...
....... 9
Steps for Certification of a Site / Park .......................................... ...............................
......................
I ......11
ProgramCriteria ..........................................................................
Industrial / Business Park Certification Criteria ................................
_16
16
Industrial Site Certification Criteria . ............................... ............................
21
...........24
Intent to Certify Questions & Requirements............ ••••••••••••••••••• °•••"•"" " "'°
-
Application Questions and Requirements ......... ................••••••••••••••• ..... •
.......................29
29
Site Information Required for Online Submission ............................ ........................
Index of Attachments Required to Complete Certification Process ..........
C Department of Commerce —Certified Sites Nrogrdni
Executive Summary of Changes
The Certified Sites Program's criteria and certification process were revised to incorporate
changes from a nationally- renowned site selection consultant, McCallum Sweeney Consulting,
and a stakeholder group of state, regional and local economic developers along with utility
providers and engineering consulting firms. The major changes to the program are
summarized.
Criteria:
• All materials are to be submitted online on the North Carolina Buildings and Sites Database.
• A program steering committee has been established - The steering committee meets every
other month to review applications - The steering committee:
o Approves sites / parks into the Certified Sites Program to complete documentation
requirements after reviewing the Intent to Certify form and recommendation from the
Technical Review Team
o Declares a site ( park a North Carolina Certified Site after a review of required
documentation and the recommendation of the Technical Review Team
o ,Periodically reviews program criteria for necessary updates
A Technical Review Committee, comprised of representatives of the Department of
Commerce with expertise in issues associated with the site certification process, has been
established - Members of this team will assist the Program coordinator in responding to
questions or concerns regarding site issues, will participate in visits, and will assist in making
recommendations to the Steering Committee.
Members of the Technical Review Committee include:
• Peggy Anderson, Senior Economic Development Representative
• Bruce Andrews, Senior Economic Development Representative
• Steve Brantley, Senior Economic Development Representative
• Paul Jordan, Environmental Consultant
• George Sherrill, Section Chief, Community Development Block Grant Program,
Commerce Finance Center
Certified Sites Program
2 NC Department of Commerce —
Jamie Vaughn, Resource Manager for the Department of Commerce, will serve as the
Program Coordinator and will manage the Certified Sites Program on a day -to -day basis -
The Program Coordinator will:
o Respond to all initial inquiries and requests regarding the Certified Sites Program
o Schedule and coordinate Steering Committee meetings
o Prepare documentation for review and approval by the Steering Committee
o Schedule and participate in site visits
o Review and maintain documents uploaded to the buildings and sites database
o Make recommendations to the Technical Review Committee and Steering Committee as
required
The Certified sites Program allows. sites to be submitted in one of two different categories:
o Industrial sites which are defined as single contiguous, buildable parcels other
o Industrial / Business Parks which are sites that are intended (due to topography,
natural features or the desire of the site sponsor) to be subdivided
Industrial Park Certified Sites will require the following additional information
o A Master Development Plan that shows the location of site access roads, easements for
all utilities and proposed lot locations and sizes. The plan should take into consideration
and note the location of development limitations such as wetlands, flood plains and
permanent easements.
o The majority of the sites within a park must meet the minimum acres ( buildable acre
criteria for Industrial Sites. The park may have sites smaller than 10 acres, but more
than 50% of the parcels should be 10 acres j 90% contiguous and buildable. The
Steering Committee may consider an exception in limited situations where topographical
challenges make it impossible to meet this requirement.
Sites that wish to be certified must meet the following buildable acres guidelines, all
buildable acres must be contiguous:
Comm
NC Department of erce — Certified Sites Program
3T
Documentation required proving buildability includes:
A Wetlands Determination (not ACOE — approved) must be completed
A Geotechnical Study must have a specific number of borings based on the total number
of acres in the buildable area:
Total Buildable Acreage Borina_ s R?auired
Less than 75 acres 1 for every 15 acres in developable area
76 acres to 500 acres 1 for every 20 acres in developable area
Greater than 501 1 for every 30 acres in developable area
Ownership /Control — A title search must be competed on the site that goes back at least 50
years
Coastal Area Management Act (CAMA) Counties Sites that are located in an Area of
Environmental Concern (AEC) are not eligible for certification as part of the North Carolina
Certified Sites Program.
If the site is located in one of the 20 coastal counties covered by LAMA and not in an AEC,
the following are required for certification:
o At the intent to Certifystage, a community must provide a letter from the
Division of Coastal Management (DCM) that validates that the site is consistent
with the county's certified CAMA land use plan and allows for industrial
development.
o As part of the documentation required for final approval, the community must
include the certified CAMA land use plan as part of the site's documentation.
o For recertification, every 2 years, the community must provide a revised letter
from DCM that allows for industrial development. county's certified
CAMA land use plan ed
To request a letter from DCM, please contact John Thayer, Manager of Planning /Public
Access, at 252.808.2808, 888.472.6278 or John.Thayer @ncdenr.gov. You may also contact
one of the district planners listed below:
o Camden, Chowan, Currituck, Dare, Gates, Pasquotank and Perquimans Counties:
Charlan Owens, AICP, District Planner, 252.264.3901,
charlan.owens @ncdenr.gov
o Beaufort, Bertie, Hertford, Hyde, Tyrrell and Washington Counties: VACANT
o Carteret, Craven, Onslow (north of the New River) and Pamlico Counties:
Maureen Meehan Will, 252.808.2808, maureen.will @ncdenr.gov
o Brunswick, New Hanover, Onslow (below New River) and Pender Counties: Mike
Christenbury, 910.796.7426, mike.christenbury@ncdenr.gov
Essential Services to the Site:
o Electric— Communities must submit an estimated timeline for extending electric service
to the site — a minimum of three -phase electric service is required
Water— A minimum service requirement of 500,000 gallons per day of excess permitted
water capacity is required
NC Department of Commerce — Certified Sites Program
o Sewer - A minimum service requirement of 300,000 gallons per day of excess permitted
sewer treatment is required
o Rai/ service— Sites that can be rail served and intend to marketed as such must
provide a letter from the rail provider indicating a willingness to serve the site —
InfoIm ovements cost
siites that require upgrades in order toomeet the 'NCDOT sgtalndard service
o Road p
for tractor- trailer access must provide a cost and estimated schedule for the upgrades
Process:
community must list asite / park on the North Carolina Buildings and Sites Database in
A initiate the certification process and check the Intent to certify box in order to
order m
initiate the process
A community must complete and then wait to for forward with the p o ess' unt I they prior to the
for the next Steering Committee,
receive the acceptance from the Steering Committee
The Technical Review Team will make a site visit prior to the Steering Committee meeting
e ' and make a recommendation to the Steering Committee
Re- certification:
Certified Sites must be re- certified every two years in order to maintain the
All North Carolina
designation
Every two years a local community must submit: for an
o Appropriate documentation which a '
updated let er from property ownereuupdated pdtio1nnal
an two (2) year period such as:
agreement, updated listing agreement, etc, rice and conditions for sale
o A current letter from owner or controlling entity indicating P has changed,
or lease
o A current boundary survey or compiled / inspection survey if the property ort for
an easement has been county a or municipal pal elected officials expressing supp
• Updated letters from county
certification
• Updated information regarding essential services to the site consistent
o
certified CAMA taro uDse plan and aalows for industrial'development with the county's
hat valiates tht the site
NC Department of Commerce — Certified Sites 1 rograui
Every four (4) years, in addition to the informa'_ion above, a local community must submit:
o Phase I Environmental Site Assessment
• Preliminary Wetlands Assessment
• A new geotechnical study will also be requ red if there has been any site disturbances
such as clearing, grading, etc.
For questions about the Certified Sites Program o ,ntact:
For technical questions: Peggy Anderson; Senior Economic Development Representative
o panderson @nccommerce.com
o (919) 733 -4990
For Program Specific Questions: Jamie \aughn, Resource Manager
o jvaughn @nccommerce.com
o (919) 715 -7226
Certified Sites Program
NC Department of Commerc
Proara_ Overvlevl
Program Objectives / Purpose
The purpose of North Carolina's certified Sites Program is to provide a statewide inventory
of industrial sites that have undergone a rigorous pre - qualification process to ensure they meet
a consistent set of standards. t providing detailed
A certified site reduces the risks ass
price anldavva availability, utilities, b
utili es, acces, environmental
information about a site including
concerns, and potential site development costs.
s intent to certify from the Steering Committee, participate in a site
Each site certified as part of the North Carolina Certified Sites Program must receive
approval of the community th e Technical visit by members
and accurate documentation on of each program element program mentand receive final
provide complete
approval by the Steering committee.
The entire certification process will ultimately be entirely online as part of the state's
Buildings and Sites Database and all it certification companies d information will be available on the
internet for immediate access by Prospective
Program History and Successes
North Carolina's Certified Sites Program began in 2001 in response to the rapidly
changing pace of economic development and the need to have more sites immediately ready
for development. e tedt :S Since e of the more first than 95asites in 50
counties, totaling g almost 25,000
14
sites w
acres, have earned the Certified Sites designation.
Starting in 2008, the program's criteria and certification process were revised to
incorporate suggested changes from
der at up lof state, and local economictdevelope s, ied site
Sweeney Consulting,
along with utility providers and engineering consulting firm allies. This was undertaken because
it was recognize keep up wiNh he more than 15 states and other economic development ' should be
revisited lead. any o the e
organizations similar r stingentdetailed
ave launched snub subsequently to he NC program have
programs that
requirements, leaving the current NC program weaker and therefore less revered when
compared with other states.
d s economic development
In addition rincertification ommt was a l rocs for recertification was also
professionals to as assist in p ess. p
developed. The revamped program launched in 2009; and all sites previously designate as
Certified Sites are required to meet the new program criteria.
7 NC Department of Commerce — Certified Sites Program
Program Structure/ Organization
Steerinaee
The Certified Sites Program Steering Committee will:
1. Approve sites that have submitted information necessary to complete the Intent to
Certify after a site visit and a recommendation by the Technical Review Team have been
completed
2. Declare a site a North Carolina Certified Site after review of completed documentation
3. Periodically review program criteria for necessary updates
The Steering Committee is appointed by the Secretary of Commerce. Members are
appointed to serve a 2 -year term with terms expiring on a rotating basis to ensure some ural
continuity on the committee. Half of the membership of then a 90 a two y a9 co mmitt the will
be appointed to a one -year term while the rest will be appo
expiration of the inaugural terms, all subsego. t d seats for nIe additional ti ttwo -year term, but must
Steering Committee members may be reapp
sit out the next two -year term before seeking another appointment.
The inaugural Certified Sites Steering Committee is comprised of:
• One (1) individual representing a Consulting Engineering Company — Rick Kolb, Principal
Geologist, MACTECEngineering & Consulting
• One (1) individual representing a Utility —John Gelb, Director of Economic Development
Carolinas, Duke Energy
one (1) individual representing a local Economic Development organization —Tom
• Johnson, Executive Director, Rutherford County EDC
• One (1) individual representing the Department of Commerce Raleigh Office — Garrett
Wyckoff, Economic Development Representative • One (1) individual representing a Department of Commerce Regional Office —Tim Ivey,
Existing Industry Specialist, Northeastern Regional Office
• ' `One (1) individual representing a management function of the Department of Commerce
Business & Industry Division — Susan Fleetwood, Director of Strategic Projects
The Steering form as well as every
submitted completed tdocumentation l for final
Intent al fu
approval. Documents reviewed by the Steering Committee wi // be required to be submitted no
later than three (3) weeks prior to the meeting date.
A proposed schedule of meetings and submission deadlines for 2009 is below:
® Wednesday, August 26"' — Inaugural Meeting of the Certified Sites Steering Committee
o Wednesday, August 5 is the deadline for submission of information for Inaugural
Meeting of the Certified Sites Steering Committee
Wednesday, October 28th — Second Meeting of the Certified Sites Steering Committee
o Second Meeting t he Certified is the
Sides Steering r of information for the
Committee
JNC Department of Commerce — Certified sites Nrograin
Wednesday, December 16th — Third Meeting of the Certified Sites Steering Committee
o Wednesday, hd Meeting of e
vrCber 2dth is the
Steering deadline for
submission of information for
T
Technical Review Committee
Review Committee is comprised of representatives of the Department of
The Technical Revie
Commerce with expertise issues associated with the site certification process. Members of the
e Program Coordinator in responding assist questions or
Technical Review Committee will assist th e visits and will assist
concerns regarding specific site issues, will participate in sit in making
recommendations to the Steering Committee.
Members of the Technical Review Committee include:
• Peggy Anderson, Senior Economic Development Representative
• Bruce Andrews, Senior Economic Development Representative
• 'Steve Brantley, Senior Economic Development Representative
• -Paul Jordan, Environmental Consultant
• George Sherrill, Section Chief, Community Development Block Grant Program,
Commerce Finance Center
Program
Jamie Vaughn, Resource Manager for the Business and Industry Division, will serve as the
the Certified Sites Program on a day-to-day basis. The
Program Coordinator and will manage
Program Coordinator will:
I inquiries
Respond to all initia and requests regarding the Certified Sites Program • • Schedule and coordinate Steering Committee meetings Committee
• Prepare documentation for review and approval by the Steering
• Schedule and participate in site visits
Review and maintain documents uploaded to the buildings and sites database
• • Make recommendations to the Technical Review Committee and Steering Committee as
required
Program Guidelines
Steps for Certification of a Site /Park
Creating an Industrial / Business Park certification category encourages communities to think
ahead about the possible uses of sites set aside for industrial development. As an example, a
community certified a site in the previous program, and even though the community planned to
develop it as a park, did not prepare a master development plan. A client searching for a site
was interested in the park, but because a master development plan had not been developed,
the client eventually determined that the easements, topographical challenges and wetlands
precluded it from locating in the park. In the new program, with the Master Development Plan
in place, the community will be better prepared to demonstrate to a prospective client how the
site will meet the client's needs.
1. Enter required site data into the Buildings and Sites Database and click Intent to Certify
9 NC Department of Commerce — Certified Sites Program
Z Certified Sites Pr r click Submit
the Crtified Sites Program intent to Certify
ogram Coordinator automatically be notified of the local
The
I
community's interest in certifying the site
3. The Certified Sites Program Coordinator will contact the local community and schedule a
site visit by the Technical Review Team
4. The n eo e�s Program Coordinator
Inte t Cfy form and site visit assessments and prepare a recommendation for the
Steering Committee Dves the Intent to Certify
5. If the Steering Committee ap hen move forward with obtain ng theo unity will
rema n ng
receive notification and may
documentation required for certification
6. Once all required documentation Coordinator will make a final review of thesmat gals and place
Certified Site program
the site /park on the next Steering Committee Meeting agenda for final approval (Pease
note: if submission dead lines are missed, the Soererrin�Committee Vwll not her mon .)
site until the following meeting - the Steering
7. With final approval from the Steering Committee, the local community will receive a
certificate certifying the site as a North Carolina Certified Site
8. The local community is
up-to-date as locations are usold, improvements s information
re made and /oriother changes occur
9. Information will be sent to the local community approximately six months prior to the
two -year and four -year anniversary dates to remind the local community of the updated
information that will be required to recertify the Certified Site
ontact the Certified (VOTE: Please ctified Sites Program Coordinator with any questions or
al issues as on as they are
issues as soon, as
can si significant
l res
i savings of time and expense.
Certified Sites
E`�
NC Department of Commerce —
y ®i
Recertification
Sites /parks that are certified must be recertified every two (2) years. In order to recertify
the site / park, the sponsor must submit the following updated information:
Appropriate documentation which assures that the site may be offered or an option
two (2) year period such as: an u additional
pdated letter from property
agreement, updated listing agreement, etc. ating p rice and conditions for sale
A current letter from owner or controlling entity indic
or lease has changed,
A current boundary survey or compiled / inspection survey if the property
an easement has been granted or a piece has been sold support for
Updated letters from county and /or municipal elected officials expressing
certification
Updated information regarding essential services to the site
New LAMA letter, if applicable
A new Master Development Plan if a community combined parcels in the park for a client
they would just need to submit reflecting the change. years
Sites that a� certification, n, must also resubmit essubmi the following environmental dueedi�gence
from the origin
.requirements in addition to the requirements listed above:
• Phase I Environmental Site Assessment
• Preliminary Wetlands Assessment
• A new geotechnical study will also be required if there has been any site disturbance
such as clearing, grading,
Program Criteria
The Certified Sites Program criteria were revised in 2008 with input from McCallum
Sweeney Consulting and a stakeholder group of state, regional and local economic developers,
along with economic development allies from utilities and engineering firms.
The Certified Sites Program allows communities to submit sites in one of two categories:
Industrial Sites which will be defined as single contiguous, buildable parcels • • Industrial / Business Parks which are sites that are intended (due to topography or other
natural features or the desire of the site sponsor) to be sub - divided.
C Department of Commerce — Certified Sites Nrogram
Industrial Business Park Certification Criteria
1. Submit the Intent to Certify form :pia the website - This form must be approved by the
steering committee before a Park s allowed to move forward with the certification
process
2. The applicant must have a letter ior orn the county on proposal ford municipal commissioners
this Park
government expressing support
3. prospective industrial investorsr' I'achasite amust be available for ar sale or lease to
tive minimum of two years
- The applicant must attach the i<, lowing documents to certify that the site is available:
a. Appropriate documentation : r rich assures that the site may be offered for a period
of at least 2 years - This cord( be:
Written certificat o ) from the owner
An appropriate ree I estate listing agreement authorizing an agent to offer
the property for s de
An option to purchase
A contingency ceri tract to purchase or lease
b. A copy of the present deed for the property
c. A boundary survey bearing a licensed land surveyor's signed certification is highly
recommended, the minimum standard fe Program a lensed surveyor that involves
"inspection" survey. This is a survey performed
all the steps of a certified boundary survey, including research on all available
ortion of
recorded data about a site, but does not include the onsite, ground survey p
the certified boundary survey.
d. The results of a title search showing clear title to the proposed site (the title search
must encompass at least the prior 50 year history)
e. A county tax map depict ing the location and property boundaries of the site
4. The sites in the proposed Industrial Park must have an establi left price and
the rims for
the sale or lease of the prc f,erty The applicant must
controlling entity stating a price and conditions of sale or lease
12 1 NC Department of ( ommerce — Certified Sites Program
5.
1.1
I site within criteria h individua below h Thermajo ity of the sitesmwith n a park must meet then
minimum acres / buildable acre criteria for Industrial Sites - The park may have sites
smaller than 10 acres, but more than 50% of the parcels should be 10 acres / 90%
riay situattiions where topographical challenges
make it impossible dtormeet this requirement.
The applicant must provide documentation that demonstrates the parks ability to be
developed - These attachments must include the following: easements, judgments, liens,
a)
restrictive covvenafnts, and any oither items that might impact the entire Park`s
developability
b) Phase I environmental audit roved (include map(s) and/or
c) A Wetlands Determination — not ACOE app
reports(s) indicating the location of wetlands) - If wetlands exist and will be
disturbed, show plan for mitigation, including costs
d) Include map(s) and /or report(s) indicating the location of rare or endangered
Plant and /or animal species
e) Include map(s) and /or report(s) indicating the location of archeological findings,
historic sites or structures
f) Map indicating location of water bodies in the Park with estimated flow of such
bodies
g) ,Document that the site's soil characteristics For with
development (attach geo- technical study)
study should have no less than three borings and should follow this sliding scale
based on acreage:
J
Tota Acreage Borino___ K?QU "C
Less than 75 acres i for every 15 acres in the developable area
75 acres to 500 acres 1 far
Gr eater than 500 every 30 acres in the developable area
Greater
7, The Park must be directly served by a road that is compatible with with NCDOT standards for
tractor /trailer access - If that access does not exist, the applicant must submit a Letter
of Intent stating access will be upgraded to required standards when the Park is
developed - This letter should contain specific details about t should road
provide amen cost
necessary to allow access to the park, upgrades to the site access
schedule for making all necessary upg
13 NC Department of Commerce — Certified Sites Program
must provide a park development plan - This plan should provide a cost
g. The applicant
estimate for the proposed park development of theupark development plan the applicant
must
extension
lso attach addition
the following Idocgumentts:
a) A topographic survey or topographic analysis
b) An Engineer's site development cost estimate
g. The Park must be zoned appropriately (if applicable) - If not, describe land uses
surrounding the Park and indicate whether or not rezoning will be required - If yes,
attach a letter from the appropriate governing body indicating a commitment to re -zone
the Park
10. designat d as aneexxemp outside of a
site and evidence of sites exemption status must be
provided
11. The Park must be located outside of the 100 -year flood way Please attach a map
depicting the location
Flood elevations for lfloodable areas bwithin the park and any filled
the of
the Park, 100 y
engineer's there is certification lgthat the filled areas
are in co pl an9e with local ordinances or
other recognized standards
If the site is located in one of the 20 coastal counties covered by LAMA and not in an
12.
AEC, the following are required for certification:
o At the Intent to Certify stage, a community must provide a letter from the
wDivision te Coastal Management
CAMA land use plan validates I allowas forindustr ai consistent
with th
development. approval, the community must
o As part of the documentation required for final
include the certified CAMA land use plan as part of the site's documentation.
, every 2 years, the community provide revised letter
recertification 0 For hounty'scrtifed
from DCM that that the site is
CAMA land use plan and allows for industrial development.
Sites that are located in an Area of Environmental Concern (AEC) are not eligible for
certification as part of the North Carolina Certified Sites Program.
To request a letter 0 2808,88 ',472 62 contact 3 hn.Thayer @n denrgov. You may also contact
Access, at di planners listed below:
one of the district p Currituck, Dare, Gates, Pasquotank and Perquimans Counties:
o Camden, Chowan,
Charlan Owens, AICP, District Planner, 252.264.3901,
charlan.owens @ncdenr.gov
0 Carteret, Craven, e slow (north of the New River) Washington
nd Pamlico' Counties:
Maureen Meehan Will, 252.808.2808, maureen.will @ncdenr.gov
Certified Sites Progra
14� l NC Department of Commerce — m
0 Brunswick,
Chr stenburye910,796.74 6,lmike christ bury@ncdenr govnder Counties: Mike
13. The Park must be served by industrial quality power (a minimum of three -phase electric
service) - The applicant must attach a letter from the power supplier addressing
availability and time required to supply three -phase electric service to the Park
14. If the applicant intends to market the park as served by natural gas, a statement from
supplier indicating size, feasibility and reliability of supply and time required for
extension must be attached
15. The park must be served by public water service capable of providing up to 500,000
gallons per day - If the public water infrastructure is not within 500 feet of the park
please attach the following documentation:
a) Extension engineering design (including cost and schedule)
b) A copy of approved State permits for the water system extensions
C) Proof that rights -of -way for the extension have been obtained
d) Written county government commitment to finance the water extension
upon request for service
e) An engineer's cost estimate for extending water service to the park and
time required for extension
If the water infrastructure is within 500 feet of the park, the applicant must attach a
letter from the water service provider certifying that there is a minimum of 500,000
gallons per day of excess permitted capacity available. This letter should also attest to
its ability and willingness to provide appropriate service to the proposed park, the size of
existing or proposed transmission lines, the available water storage capacities of the
system, the static and residual pressures in the vicinity of the park, and the excess
capacity of the existing water treatment facilities. The local supplier of water service
must also certify that the proposed park is within 500 feet of existing water lines.
16. The park must be served by a public wastewater system capable of processing a
minimum of 300,000 gallons per day - If the wastewater infrastructure is not within 500
feet of the park, please attach the following documentation:
a) Extension engineering design (including cost and schedule)
b) A copy of approved State permits for the sewer system extensions
c) Proof that rights -of -way for the extension have been obtained
d) Written county government commitment to finance the sewer extension
upon request for service
e) An engineer's cost estimate for extending wastewater service to the park
and time required for extension
If the wastewater infrastructure is within 500 feet of the park, the owner of the relevant
wastewater treatment facility(s) must attach a letter certifying that there is excess
permitted treatment capacity for 300,000 gallons per day available. This letter should
Certified
15 NC Department of Commerce — Sites Nrogram
also attest to the providers ability and willingness to provide appropriate service to the
proposed collection lines; the size of existing or proposed pumping facilities which are
necessary to service the park; the extent of present is presently Huse attthe theatmenty of
the park; the type of treatment technology which
facility; and the distance which local service must be extended to serve the park. The
local supplier of wastewater treatment service must also certify that the proposed park
is within 5oo feet of existing wastewater lines and that connection to these wastewater
lines is technically and economically feasible
17. If the applicant intends to market the proposed park as rail - served, then the applicant
must attach a letter from rail provider indicating its willingness to provide rail access to
the proposed site, as well as the cost and schedule for extending rail to the site
18. The park must be served by telecommunications infrastructure
19. The applicant must submit a master development plan that shows the location of park
access roads, easements for all utilities (water, sewer, natural gas, electricity,
telecommunications), and proposed lot locations and sizes - This Master Development
plan should take into consideration and note the location of development limitations,
such as wetlands, flood plains and permanent easements
It also important to stress that just because the Master Development Plan has been
completed the Certified Sites designation does not require a park to be developed as
originally planned. We certainly understand the need for the flexib
dills this.ub- divide
and /or combine parcels for prospective clients and nothing p
Industrial Site Certification Criteria
L Submit the
approved by the steering' form via the
before assite is allowed t to
move forward withtthe
app Y
certification process
2. The applicant must have a letter ffrom
he county commissioners t on proposal fo and/or
site icipal
government expressing support
3. The site available forlabminimum of two yearns. The applicant umu t attach the following
for sale or lease to prospective must be
documents to certify that the site is available:
a. Appropriate documentation which assures that the site may be offered for a period
of at least 2 years. This could be:
Written certification from the owner
eement authorizing an agent to offer the
An appropriate real estate listing agr
property for sale
An option to purchase
I6 NC Department of Commerce -- Certified Sites Program
6 Contingency contract to purchase or lease
b. A copy of the present deed for the property
c. A boundary survey bearing a licensed land surveyor's signed certification is highly
recommended, but the minimum standard for the e Program (g is a "compiled" involves
inspection survey. This is a survey performed
all the steps of a certified boundary survey, including research on all available
ion of
recorded data about a site, but does not include the onsite, ground survey portion
the certified boundary survey.
d. The results of a title search showing clear title to the proposed site (the title search
y)
must encompass at least the prior 50 year histor boundaries of the site
e. A county tax map depicting the location and property
4. The site must have an established price and terms for its sale or lease The applicant
must submit a letter from the owner or controlling entity stating a price and conditions
of sale or lease
g minimum standards for both site size and percent
5. The site must meet the followin
buildable:
_. aPr�anr of Buildable Acres
-.I- O._- 90%
25 85%
50 75%
75 70%
15 65%
200+ 60%
6. The applicant must provide documentation to demonstrate the site's ability to be
developed. These attachments must include the following:
a. Documentation of any known rights -of -way, easements, judgments, liens,
restrictive covenants, and any other items that might impact the entire site's
developability
b. Phase I environmental audit
c. 'A ports(s) t nd indicating g the location ofDwetlands) - If wetlands exist and will be
re
disturbed, show plan for mitigation, including costs
d. Include map(s) and /or report(s) indicating the location of rare or endangered
plant and /or animal species
e. Include map(s) and /or report(s) indicating the location of archeological findings,
historic sites or structures
f. Map indicating location of water bodies on site with estimated flow of such
bodies
T7NC Department of Commerce - Certified Sites Nrogran
g. Document th<x the site's soil characteristics compatible ith industrial
cal
development: (attach geo- technical study) For certification,
study should 'nave no less than three borings and should follow this sliding scale
based on acreage:
Total Acrea e Rnrino__ s R_ea�1red
Less than 75 acres 1 for every 15 acres in the developable area for every 20 acres in the developable area
75 acres tto han 500 500 acres 1
Gr eater th for every 30 acres in the developable area
Greater
7. The site must be directly served by a road that is compatible with NCDto scan a rds for
tractor /trailer access - If that access does not exist, the app'
of Intent stating access will be upgraded to required standards when the site is
developed This let:t -er should contain specific details about s hould pro
pro improvements
t and
necessary to allow z ccess to the site, in addition, applicant
schedule for makine all necessary upgrades to the site access
8. The applicant must provide a site development plan - This plan should provide a cost , drainage and utilities
sive of estimate for a pro Y>sed site development, i o the site devellopment plan, the applicant
extension In addition to providing a copy
must also attach:
a. A topograpl tic surveyor topographic analysis
b. An engineers site development cost estimate
9. The site must be zoned appropriately (if applicable) - If not, describe land uses
surrounding the site and indicate whether or not rezoning will be required - If yes,
attach a letter from the appropriate governing body indicating a commitment to re -zone
the site
10. The site must be located outside of a watershed area - If not, the site must be
designated as an exempted site and evidence of the site's exemption status must be
provided
11. The site must be located outside of the 100 -year flood way - Please attach a map
depicting the location of the site in relation to water bodies in the immediate vicinity of
site, 100 year flood elevations for floodable areas within the site and any filled areas - If
there is filling on the site in designated flood fringes areas please attach an engineer's
certification that the filled areas are in compliance with local ordinances or other
recognized standards
12. If the site is located in one of the 20 coastal counties covered by LAMA and not in an
AEC, the following are required for certification:
o At the intent to Certify stage, a community must provide a letter from the
Division of Coastal Management (DCM) hat validates that the site is consistent
It
with the county's certified CAMA land use plan and allows for industrial
development.
s -
Certified Sites Program
18 NC Depaf tment of Commerce —
o As part of the documentation required for final approval, the community must
include the certified CAMA land use plan as part of the site's documentation.
site revised letter
certification, community provide
0 istent wi hthe county s certified
from DCM that that the sons
CAMA land use plan and allows for industrial development.
Sites that are located in an Area of Environmental Concern (AEC) are not eligible for
certification as part of the North Carolina Certified Sites Program.
To request a letter from DCM, please contact John Thayer, Manager of Planning /Public
Access, at 252.808.2808, 888.472.6278 or John.Thayer @ncdenr.gbv. You may also
contact one of the district planners listed below:
quotank and Perquimans Counties:
Charlan Owens, AICP, District Planner, 252.264.3901,
charlan.owens @ncdenr.gov
O `Beaufort, Bertie, Hertford, Hyde, Tyrrell and Washington Counties: VACANT
o Carteret' Onslow (north of the New River) and Pamlico Counties:
Maureen Meehan Will, 252.808.2808, maureen.will @ncdenr.gov
o Brunswick, New Hanover, Onslow (below New River) and Pender Counties: Mike
Christenbury, 910.796.7426, mike.christenbury@ncdenr.gov
13. The site must be served by industrial quality power (a minimum of three -phase electric
service) The applicant must attach a letter from the power supplier addressing
availability and time required to supply three phase electric service to the site
14. If ind eating size, feasibility and reliability of s supply and gas,
me required for
from to market the site as serve
supplier
extension must be attached
15. The site must be served by public water service capable of providing up to 500,000
gallons per day - If the public water infrastructure is not within 500 feet of the site
please attach the following documentation:
a. Extension engineering design (including cost and schedule)
b. A copy of approved State permits for the water system extensions
of-Way for the extension have been obtained
d. d. Written county Proof that county government comet ment to finance the watery extension upon
request for service
e. An engineer's cost estimate for extending water service to the site and time
required for extension
If the water infrastructure is within 500 feet of the site, the applicant must attach a
letter from the water service provider certifying that there is a minimum of 500,000
gallons per day of excess permitted capacity available. This letter should also attest to
its ability and willingness to provide appropriate service to the proposed site, the size of
existing or proposed transmission lines, the available water storage capacities of the
system, the static and residual pressures in the vicinity of the site, and the excess
Certified Sites Program
19 NC Department of Commerce —
capacity of the existing water treatment facilities. The local supplier of water service
must also certify that the proposed site is within 500 feet of existing water lines.
16. The site must be served by a public wastewater system capable of processing a
minimum of 300,000 gallons per day - If the wastewater infrastructure is not within 500
feet of site, please attach the following documentation:
a. Extension engineering design (including cost and schedule)
b. A copy of approved State permits for the sewer system extensions
c. Proof that rights -of -way for the extension have been obtained
d. Written county government commitment to finance the sewer extension upon
request for service
ate for extending wastewater service to site and time
e. An Engineer's cost estim
required for extension
If the wastewater infrastructure is within 500 feet of the site, the owner of the relevant
wastewater treatment facility(s) must attach a letter certifying that there is excess
permitted treatment capacity for 300,000 gallons per day availabe service to the
also attest to the provider's ability and willingness to provide appropriate
proposed collection lines; the size of existing or proposed pumping facilities which are
necessary to service the site; the extent of present s presently n use at the in the vicinit
my of
the site; the type of treatment technology which
facility; and the distance which local service must be extended to serve the site. The
local supplier of wastewater treatment service must also certify that the proposed site is
within 500 feet of existing wastewater lines and that connection to these wastewater
lines is technically and economically feasible.
17. If the applicant intends to market the proposed site as a rail -served site,
then the
applicant must attach a letter from the rail provider indicating its willingness to provide
rail access to the proposed site, as well as the cost and schedule for extending rail to
the site
18. The site must be served by telecommunications infrastructure.
20 1 NC Department of Commerce — Certified Sites Program
Intent to Certify Questions & Requirements
Any party interested in pursuing site certification must first complete the Intent to Certify form
on the website and submit it along with the required attachments to the North Carolina
Department of Commerce for review by the steering committee.
1. Is the site located in one of the 20 coastal counties covered by Coastal Areas
Management Act (LAMA)? Yes No
If yes, is the site located in an Area of Environmental Concern (AEC) established by the
Coastal Resources Committee? Note: Sites that are located in an Area of Environmental
Concern (AEC) are not eligible for certification as part of the North Carolina Certified
Sites Program. Yes No
If yes, the applicant must begin the CAMA permitting process prior to receiving
_certification? Yes No
2. Is the access road to the proposed site compatible with NCDOT standards for tractor /
trailer access? Yes No
If No, please describe present road condition:
3. Does the site have any topographical or wetlands issues that may prevent the site / park
from meeting the buildable acre requirement as set forth in the Certified Sites program?
Yes No
If yes, please explain.
4. Is the proposed site located in a designated critical area of a public water supply?
Yes No
C rtified Sites Program
2j NC Department of Commerce — e
5. Is there filling on the site in a designated floodway area (no sites in the floodway can be
certified)? Yes No
6. Is there filling on the site in designated flood fringe areas? Yes No
If yes, do the filled areas appear to be in compliance with local ordinances or other
recognized standards?
Is an engineer's certification of filling standards available (required)?
Yes No
7. Can industrial quality power be made available to the site? Yes No
8. Is public water supply within 500 feet of site? Yes No
9. Is public wastewater supply within 500 feet of site? Yes No
10. Please provide the following visuals to assist in the evaluation of the proposed site:
• Site boundary map
• Aerial photo of the site
• Letter from county government expressing support for the project
Letter from local municipality (if applicable) expressing support for the project
• If the site / park is located in one of the 20 coastal counties covered by CAMA, in
• addition to the above requirements an applicant must submit
o- A letter from the Division of Coastal Management (DCM) that validates that
the site is consistent with the county's certified CAMA land use plan and
allows for industrial development.
To request a letter from DCM, please contact John Thayer, Manager of
Planning /Public Access, at 252.808.2808, 888.472.6278 or John.Thayer @ncdenr.gov.
You may also contact one of the district planners listed below:
• Camden, Chowan, Currituck, Dare, Gates, Pasquotank and Perquimans
Counties: Charlan Owens, AICP, District Planner, 252.264.3901,
charlan.owens @ncdenr.gov
• Beaufort, Bertie, Hertford, Hyde, Tyrrell and Washington Counties: VACANT
Carteret, Craven, Onslow (north of Maureen Meehan Willi e River)
252,808.2808,maureenewill @d Pamlico Counties:
n d nrgov
22 NC Department of Commerce — Certified Sites Program
o Brunswick, New Hanover, onslow (below New River) and Pender Counties:
Mike Christenbury, 910.796.7426, mike.christenbury@ncdenr.gov
Communities should not proceed with certification requirements until after the
Steering Committee has reviewed the Intent to Certify form and accepted the site
into the program.
i3 NC Department of Commerce — Certified Sites Program
Application Questions and Requirements
This application should be completed online; this paper document is for informational purposes
only. Be sure to receive approval to proceed with the application process from the
Steering corr:mittee prior to starting this application.
prnnerty Avi tabili
Please complete site data worksheet. The following sections of the application elaborate on
information which the applicant provides on the data worksheet.
Specify type of transaction offered to prospective industrial investors: Fee Simple other
Specify type of ownership and control (circle one):
• Private Ownership
• Public ownership
Privately held and controlled by sponsor, local government or local EDC entity
• Attach apps opriate documentation which assures that the site may be offered for a period of at
least 2 yeas s. This could be:
Written certification from the owner
An appropriate real estate listing agreement authorizing an agent to offer the
property for sale
An option to purchase
A contingency contract to purchase or lease.
Attach a c gay of the present deed for the property
Attach a i urrent boundary survey or a compiled / inspection survey for the proposed site.
Attach the results of a title search showing clear title to the proposed site (the title search must
encompass at least the prior 50 years history)
Attach a County Tax Map depicting the location and property boundaries of the site.
Price Yes No
Has a price been established? Yes No
Have conditions of sale /lease been established?
Attach letter from owner or controlling entity stating a price and conditions of sale or lease.
1C Department of Com
merce — Certified Sites Program
Minimum Develooable acres:
The site must meet the following minimum standards for both site size and percent buildable.
Proof of Site Bui_ lidab!liW
Please attach the following:
• Documentation of known Rights -of -Way, easements, judgments, liens, restrictive
covenants, and any other items that might impact the entire site's developability.
• Phase I environmental audit.
Include Wetlands Determination which includes map(s) and/or reports(s) indicating
• exist and will be disturbed, show plan for
the location of wetlands. If w
mitigation, including costs.
• Include map(s) and /or report(s) indicating the location of rare or endangered plant
and /or animal species.
• Include map(s) and/or report(s) indicating the location of archeological findings,
historic sites or structures.
• Map .indicating location of water bodies on site with estimated flow of such bodies. • Document that the site's soil characteristics are compatible with industrial
development (attach geo- technical study).
Site Access
is the public access road to site compatible with NCDOT standards for tra or
Yes /trailer acceNo
If no, attach Letter of Intent stating access will be upgraded to required standards when the
site is developed. This letter should contain specific details about all road improvements
necessary to allow access to the site.
In addition, applicant should provide a cost and schedule for making all necessary upgrades to
the site access.
25 1 NC Department of Commerce —
Sites Program
Site Development
Provide cost estimate for a proposed site development plan, inclusive of grading, drainage and
utilities extension. Attach:
• Topographic survey or topographic analysis
• Engineer's site development cost estimate
• Site development plan
Zoning
Is site zoned? Yes No
If yes, state zoning type:
Explain permitted land uses under this zoning type:
If no, describe land uses surrounding the site:
Will rezoning be required? Yes No
If yes, attach commitment to re -zone
Watershed Area
Is the proposed site located in a designated critical Area of public water supply?
Yes No
If yes, is this an exempted site? Yes No
If yes, attach evidence of site's exemption status.
Flood Plain
If applicable, attach map depicting the location of site in relation to flooding to water bodies in
the immediate vicinity of site, 100 year flood elevations for floodable areas within the site and
any filled areas.
Is there filling on the site in designated floodway area? Yes No
Note. No fi0ing on floodway is allowed for certified sites
261 NC Department of Commerce — Certified Sites Program
Is there filling on the site in designated flood fringes areas? Yes No
If yes, attach engineer's certification that the filled areas are in compliance with local ordinances
or other recognized standards.
Electric Service
Describe power service to the site:
Attach letter from power supplier addressing availability and time required to supply power to
the site. The minimum standard required is at least three phase.
Natural Gas
If natural gas is available, attach statement from supplier indicating size, feasibility and
reliability of supply and time required for extension.
Water Service
Is public water supply within 500 feet of site?
If no, attach the following documentation:
Yes No
• Extension engineering design (including cost and schedule)
• A copy of approved State permits for the water system extensions
• Proof that rights -of -way for the extension have been obtained
• Written county government commitment to finance the water extension upon
request for service.
• An engineer's cost estimate for extending water service to site and time required
for extension.
If yes, attach letter from the water service provider certifying that adequate service is available.
This letter should also attest to its ability and willingness to provide appropriate service to the
proposed site, the size of existing or proposed transmission lines, the available water storage
capacities of the system, the static and residual pressures in the vicinity of the site, and the
excess capacity of the existing water treatment facilities. The local supplier of water service
must also certify that the proposed site is within 500 feet of existing water lines.
27 NC Department of Commerce — Certified Sites Program
Wastewater Service
Is public wastewater supply within 500 feet of site? Yes No
If no, attach the following documentation:
• Extension engineering design (including cost and schedule),
• A copy of approved State permits for the sewer system extensions;
• Proof that rights -of -way for the extension have been obtained, and
• Written county government commitment to finance the sewer extension upon
request for service.
• An Engineer's cost estimate for extending wastewater service to site and time
required for extension.
If yes, the owner of the relevant wastewater treatment facility(s) must attach a letter certifying
that adequate treatment capacity and service is available. ,
This letter should also attest to the providers ability and willingness to provide appropriate
service to the proposed collection lines; the size of existing or proposed pumping facilities which
are necessary to service the site; the extent of present excess line capacity in the vicinity of the
site; the type of treatment technology which is presently in use at the treatment facility; and
the distance which local service must be extended to serve the site. The local supplier of
wastewater treatment service must also certify that the proposed site is within 500 feet of
existing wastewater lines and that connection to these wastewater lines is technically and
economically feasible.
Railroad Transport
Is rail service available to this site? Yes No
If yes, indicate provider, describe the location and quality of facilities:
If facilities are proposed, indicate when such facilities will be made available and under what
conditions, if any:
If facilities are proposed, applicant must attach a letter from rail provider indicating its
willingness to provide rail access to the proposed site.
Telecommunications
Provide information on the location, extent and quality of local telephone service. Specifically,
this information should reflect the availability of fiber optics and digital switching facilities:
2$ NC Department of Commerce – Certified Sites Program � - .a- —��
Site Information Required for Online Submission
required for be'placedoongthe program's website prior to staffing the certificat on priocessAllThe questionsust
marked with * are required.
*Site Name:
Parent Site:
*Road Number:
*Road Name:
*Road Type:
*City:
*County:
*Zip Code:
*Property Status:
Available Not Available
Date Available: Yes No
In City Limits:
y Coordinate:
X Coordinate: Environmental Audit:
Public Accessible:
Former Use:
Marketing Description:
Overview
Exceptions:
Keywords:
Comments:
Terms of Sale or Lease ' $ per acre
Sale Price: $ per acre
Lease Price:
# of Acres: AGZ U1PZ
AG or UP Zone:
Parcel Size:
Minimum Acres:
Type of Location: Yes No
Urban Progress or Agrarian Growth Zone: Yes No
Industrial / Business Park: Agricultural Non Zoned
Zoning: Industrial Commercial
Comments:
Certified Program
NC Department of Commerce —
Utilities
Electricity
*Electric Service Provider:
Primary voltage:
Secondary Delivery Voltage:
Existing Transformer Size:
Main Switch Gear:
Phases:
Onsite Generator:
Alternative Energy Sources:
LEED Certified:
Natural Gas
*Gas available:
*Gas Provider:
Distance to Main:
Main Size:
Feeder Size:
Distribution Pressure:
Water Availability
*Water Provider:
Water Main Size(in):
Storage Tanks:
Public Water and /or well water:
Pressure Static / Residual:
System Capacity Total/ Excess:
Permitted Capacity Total /Excess:
Wastewater Treatment Availability
Waste Provider:
Waste main size (in):
Feeder size:
Pressure static/residual:
System capacity Total /Excess:
Permitted Capacity Total /Excess
Onsite Treatment Type:
Solar Wind
30 1 NC Department of Commerce — Certified Sites Program
Other
Yes No
Telecommunications
Telecom Provider:
Fiber Optics: Yes No
Digital Switchina: Yes No
Comments:
Access
Access road:
General purpose Zone:
Access to Taxiway /Runway:
*Rail service available:
*Rail service provider:
Rail spur:
Potential for Rail:
Distance to Rail:
International Airport
Regional Airport:
Ports:
Community Colleges:
Universities:
Barge Access
Body of Water
Distance to Open Water
Channel Depth:
Bulkheads or Dock Available:
Contact Info
Name:
Affiliation:
Addressi:
Address 2:
City, St, Zip:
Phone:
Fax:
Email:
Website:
Marketing Materials:
311 NC Department of Commerce — Certified Sites Program
Yes No
Yes No
Index of Attachments Required to Complete Certification Process
1. Sponsor's Letter of Intent
2. County's Letter of Support
3. Municipal Letter of Support (if applicable)
4. Documentation of Ownership /Control of Site
5. Copy of Current Deed to Property
6. Copy of Current Boundary Survey or Compiled / Inspection Survey
7. Results of Title Search (minimum of 50 year history)
8. Copy of County Tax Map depicting the location and property boundaries
9. Documentation of Sales Price /Conditions of Sale or Lease from owner of controlling entity
10. Documentation:
a. Known Rights -of -Way -
b. Easements, judgments, and liens
c. Restrictive covenants and any other items that might impact the entire site's
developability
11. Phase One Environmental Audit
12. Wetlands Determination including map(s) and /or report(s) indicating location of wetlands
13. Plan for mitigation of wetlands, including costs, if necessary
14. Map(s) and or report(s) indicating the location of rare or endangered plant and /or animal
species
15. Map(s) and /or report(s) indicating the location of archeological findings, historic sites or
structures
16. Map indicating the location of bodies of water on site with estimated flows
17. Geo- technical study
18. DOT letter on road improvements, if necessary, including cost and schedule for upgrades
19. Site Development Plan
20. Topographic Survey or Topographic Analysis
21. Engineer's Site Development Cost Estimate
22. Commitment to re -zone, if necessary
23. Site's exemption status, if site is located in a designated critical area of public water supply
24. Map depicting location 100 year flood elevations for floodable areas within the site and any
filled areas
25. Engineer's Certification Regarding Filled areas
26. Letter from Power Supplier
27. Letter from Natural Gas Provider
28. Letter from Water Provider, if not available, then will need
a. Extension covering design, including cost and schedule, of extending water to the site
b. Copy of approved state permits for the water system extension
c. Proof that rights -of -way for the water extension have been obtained
d. Written county government commitment to finance the water extension upon request
e. Engineer's Cost Estimate/Time Line for Water Service
29. Letter from Wastewater Service Provider, if not available, then will need
a. Extension covering design, including cost and schedule, of extending wastewater service
to the site
b. Copy of approved state permits for the sewer system extension
c. Proof that rights -of -way for the sewer extension have been obtained
d. Written county government commitment to finance the sewer extension upon request
e. Engineer's Cost Estimate/Time Line for Wastewater Service
30. Letter from Rail Provider
31. Information on telecommunication services available
32. Site Data Form
�� NC Department of Commerce - Certified Sites Program � ._,
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