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HomeMy WebLinkAboutAgenda - 06-03-2008-3bORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 3, 2008 Action Agenda. Item No. 3=~ SUBJECT: Sanford Holshouser Economic Impact Analysis of the Buckhorn Village Project DEPARTMENT: PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Sanford Holshouser Report (Under Separate Cover) INFORMATION CONTACT: Willie Best, 245-2300 Craig Benedict, 245-2592 PURPOSE: To receive the report as comment and evidence regarding Buckhorn Village Planned Development and Special Use Permit. BACKGROUND: In November, 2007 the BOCC authorized the Manager's Office to hire Sanford Holshouser to conduct economic development services. The Sanford Holshouser Business Development Group, LLC, is an economic development consulting firm that provides action planning, site selection services, and unique strategies to communities, organizations, and companies worldwide. Sanford Holshouser has analyzed existing data submitted for the Buckhorn Village Planned Development and .submitted the attached report. The Planning staff submitted the report and an additional qualification document, on May 7 and May 9 respectively, to the Planning Board as additional written materials to be considered in the Buckhorn Village PUD application process. The author of this report is available for questions, if necessary. FINANCIAL IMPACT: The cost of the study was funded through the Manager's Office. RECOMMENDATION(S): The Manager recommends that the Board receive the report, ask questions, and otherwise as the Board decides. Economic Impact Analysis of the Buckhorn Village Project o~ Orange County, North Carolina ~~~ ti ~~ May 2008 c®~.®n~.c n~.act alysis ® the uc ®~n il~ae reject on range C®unty, ®rt ar®l~na ~~. ~j ~~r~% Developed by z5':'. pp} ; .. t~ P. +,s,~ The Sanford Holshouse;r Business'Devel;opmen~ Grqup TM1..,.1 ._._ ...,.r 'R ....~ PO Box 5646, Cary, NC 27512 www.sanfordholshouser.com May 2008 Orange County: Buckhorn Village Table of Contents Executive Summary______________ Project Overview. 2 -------------------------- 5 Property Tax Impact---------------------------------------------------------------------------- -----------------------6 Lodging Tax Analysis------------------------------------------------------------------------- -----------------------9 Retail Sales Tax Analysis-------------------------------------------------------------------- -----------------------10 Retail Economic Review--------------------------------------------------------------------- -----------------------11 Employment and Wages Analysis.------------------------------------------------------ -----------------------15 Construction Impact---------------------------------------------------------------------------- -----------------------18 Cost of Public Services: Public Safety, Infrastructure________________________ _______________________ 18 Housing and Schools--------------------------------------------------------------------------------------------------18 Benefits of Opening New Economic Development Zoned Land_______________________________20 Spin-Off Businesses---------------------------------------------------------------------------------------------------21 Environmental Impact----------------------------------------------------------------------------------------------- 21 Methodology -------------------------------------------------------------------------------------------------------------- 11 Appendix: Orange County Land Use Map of Development Area_____________________________23 References------------------------------------------------------------------------------------------------------------------24 The Sanford Holshouser Business Development Group Information Sanford Holshouser ~ 1 Orange County: Buckhorn Village Executive Summary Orange County engaged The Sanford Holshouser Business Development Group (Sanford Holshouser) to examine the economic impact of the proposed Buckhorn Village project on Orange County and the local economy. Buckhorn Village is a proposed 130-acre mixed use development at Buckhorn Road and I-85/I-40. The development plans call for 1,133 people to be employed at an anchor retailer, restaurants, hotels, and other retail businesses. The plans also call for 200 multi-family residential units. This study reviewed impacts on tax revenue streams of Orange County, public services, housing, employment, and other economic factors. In summary, the $143 million proposed development is projected to create $1,348,208 in net new annual property tax revenue to Orange County upon build out. In addition to property tax revenue, retail sales tax revenue will be increased by almost $6 million annually. Currently, about half of the $41 million in annual retail sales tax revenue collected is realized by the County. The remaining half is distributed to municipalities. Lodging tax revenue will see an approximate $92,000 in net new annual revenue. The total annual tax impact on Orange County is projected to be $4.4 million. In addition to ongoing economic impact, the construction phase is projected to generate $875,000 in new retail sales tax for Orange County and create 9321oca1 construction jobs (Barnes, 2008). The retail and hospitality sectors are important to Orange County's economy, providing jobs, entertainment, and keeping disposable income in the County. Research found that the Orange County retail market is underserved with fewer retail establishments than comparable counties. Low per capita retail sales show that dollars are being leaked to neighboring counties. Orange County has a low median household disposable income to retail sales ratio, again showing that disposable income dollars are leaving the community. A smaller percentage of Sanford Holshouser 2 Orange County: Buckhorn Village Orange County's workforce is employed in retail and accommodation and food service sectors than comparable counties. Every economic development project has associated costs and those costs are reviewed in this report. The cost to Orange County's public services (public safety, infrastructure) is limited to a short time frame as the City of Mebane is planning to annex the area within one year of construction initiation or at Certificate of Occupancy. There will be minimal cost during the short time Orange County is responsible for public services. Impact on schools due to new housing is also limited. Retail and hospitality wages are not "bread-winning" or "relocation" wages. Except for a few management positions, people will likely not relocate for these jobs. The planned 200 multi-family residential units associated with the development, if occupied by new residents with school-aged children, will have a minor impact on Orange County schools. A review of environmental permits shows that other than standard development permits, the project will require no special air or water quality permits beyond adhering to `Neuse River Rules.' In addition to the direct tax impacts described above, there are indirect benefits of economic development projects. In the case of Buckhorn Village, infrastructure extensions will open an economic development zoned area for future growth. This area has been designated in the County's land use plan for commercial and industrial development since 1981. There will also be economic spin-off to small businesses and entrepreneurs who can provide services to the development such as landscaping, security, and maintenance. Orange County, like most North Carolina communities, is keenly focused on sustainable development and creating a live, work, play community. The leakage of retail dollars indicate that Orange County citizens are driving to neighboring communities to shop. Creating retail centers in the County will keep more residents shopping local while keeping local retail sales Sanford Holshouser 3 Orange County: Buckhorn Village dollars home. Additionally, keeping retail dollars local encourages small business development and job creation. Creating jobs locally will combat the high rate of out-commuting which leads to clogged roads and transportation costs. Orange County services for residential development are subsidized by tax revenue from commercial and industrial development (Renkow, 2006) to the magnitude of $4 to $1. Without economic development, Orange County citizens will bear an increasing proportion of the cost of public services. Finally, Orange County has in place land use and growth management plans that were developed through the pubic process. The Buckhorn Village project is consistent with Orange County growth plans; will provide significant increases to tax revenues with minimal, limited short-term cost to public services; and will keep more Orange County citizens working and shopping locally. Sanford Holshouser 4 Orange County: Buckhorn Village Project Overview Buckhorn Village is a proposed 130-acre mixed-use development at the Buckhorn Road interchange on I-85/I-40 in Orange County. The proposed development will be located in a designated economic development zone and its mixed-uses include an anchor retail establishment, restaurants (15), hotels (2), and additional retail shops (55 - 65) totaling approximately 1.14 million square feet of commercial space. Once fully development, Buckhorn Village will employ an estimated 1,133 people. Construction of the proposed development is planned to begin in 2009. At this time the site is not located within a municipality; however, it is within the probably annexation area of the City of Mebane, primarily located in Alamance County. The City of Mebane and Orange County have a 2004 agreement that suggests that the City annex the site within one year of initiation of construction or by separate agreement. This agreement also specifies that Mebane will serve the site with water and wastewater service. Other utilities will be provided by private entities, or in the case of electricity, by an investor owned or cooperative power supplier. Economic and demographic data cited in this report was obtained from multiple sources. Data on the Buckhorn Village development was provided by project developers, East West Partners. Other information was gathered from public and private research sources. The consulting team reviewed "Economic Impact of Buckhorn Village, Orange County, NC," developed by Zakia Barnes, a University of North Carolina graduate student for the Chapel Hill Chamber of Commerce, and "The Cost of Community Services in Orange County," developed by NC State University for background information. Sanford Holshouser 5 Orange County: Buckhorn Village Throughout this report, comparisons are made between Orange County and a group of counties similar in geographic location, economy, or position to a core urban area. Chatham, Durham, Alamance, and Wake Counties are compared because they are adjacent to Orange County and, therefore, share a workforce and a local economy. Johnston, and Cabarrus Counties are included because they are similarly situated to core urban areas. Johnston County is adjacent to Wake County and Cabarrus County is adjacent to Mecklenburg County. Orange County is located on I-85 and I-40 in the Triangle region of North Carolina. The County seat is Hillsborough and other incorporated municipalities include Carrboro, Chapel Hill, and small parts of Durham (also in Durham County) and Mebane (also in Alamance County). Total County population is estimated to be 124,599 in 2007.. Population Coun 2000 2006 2007 st. Oran e 115,537 123,766 124,599 Alamance 130,794 139,789 144,506 Chatham 49,334 57,707 59,765 Durham 223,306 246,824 254,733 Wake 627,865 790,007 811,478 Cabarrus 131,030 157,179 159,612 Johnston 121,900 151,589 155,954 Source: NC State Data Center, 2006 Certified Population Estimates, US Census, ESRI Property Tax Impact The tables below show various projected property tax revenue impacts of the Buckhorn Village project on Orange County. The information to conduct the analysis was gathered from Orange County and East West Partners, the project development group. The figures will change if the scope of the project is changed but the same methodology can be used to develop estimates based on the new information. Sanford Holshouser 6 Orange. County: Buckhorn Village The project developer conducted a survey of existing retail establishments. The survey determined an average property tax value per square foot of anchor/destination retail space, mixed and multi-tenant retail space, and hotel facilities. These three categories were used based on the projected uses of Buckhorn Village commercial square footage. The existing business average values were applied to the mix of uses of the Buckhorn Village project. From this analysis, an estimate of property tax revenue to Orange County was projected. A.nchor/Destination Retail Property Total Square Feet Property Tag Value Property Tax Value Per SF Meadowmont Harris Teeter 49,427 $5,455,135 $110.37 Hillsborou h Wa1-Mart 168,709 $12,758,748 $75.63 Hillsborou h Home De of 104,769 $8,933,910 $85.27 Total 322,905 $27,147,793 Avera e Tax Value Per SF $84.07 Source: Buckhorn Road Associates, LLC Survey Miged/Multi-Tenant Retail Property Total Square Feet Property Tax Value Property Tag Value Per SF Meadowmont Vilia e Center 108,586 $17,122,797 $157.69 Wal-Mart Ou arcel 12,640 $1,852,006 $146.52 Wal-Mart Ou arcel 26,165 $2,678,176 $102:36 Timberl ne Sho in Center 104,656 $12,351,026 $118.02 MLK and I-40 Harris Teeter 96,511 $11,667,110 $120.89 Totals 348,558 $45,671,115 Avera e Tax Value Per SF $131.03 Source: Buckhorn Road Associates, LLC Survey Sanford Holshouser 7 Orange County: Buckhorn Village Hotels Property Total Square Feet Property Tax Value Property Tax Value Per SF Hillsborough Holiday Inn Ex ress 28,496 $3,616,177 $126.90 Chapel Hill Holiday Inn Ex ress 45,523 $5,678,152 $124.73 Cha el Hill Ham ton Inn 30,450 $6,007,832 $197.30 University Inn -Best Western 31,209 $3,847,569 $123.28 Totals 135,678 $19,149,730 Avera e Tax Value Per SF $141.14 Source: Buckhorn Road Associates, LLC Survey Using the survey information from above; an analysis was performed on the proposed square footage uses of the Buckhorn Village project. The average property tax value per square foot was applied to the project and an estimate of property tax revenue impact on Orange County was calculated. Buckhorn Village Real Estate Tax Analysis Property Use SF Average Total Orange Estimated Orange Estimated County Annual County Property Tax Property Property Property Value Tax Rate Tax Revenue Tax Value Per SF Anchor/Destination 165,000 $84.07 $13,872,148 $0.0095 $1.31,785 Retail Mixed/Multi-Tenant 859,000 $131.03 $112,553,686 $0.0095 $1,069,260 Retail Hotels 120,000 $141.14 $16,936,921. $0.0095 $160,901 Total Estimated $143,362,755 $1,361,946 Pro e Tax Revenue Source: Calculated from Buckhorn Road Associates, LLC Survey and East West Partners Information Sanford Holshouser Orange County: Buckhorn Village Estimate of Net New Revenue Property Tag Property Value Tag Revenue Existin Buckhorn Villa e Site $1,446,155 $13,738 New Construction and Property $143,362,755 $1,361,946 Im rovements Net New Revenue $1,348,208 Source: Calculated from Buckhorn Road Associates, LLC Survey and East West Partners Information It is estimated that Orange County will receive new annual tax revenues from this project of $1,348,208 upon build-out. The total tax value of the existing multiple (12) retail and hotel establishments used in the comparative survey is $91,968,638 producing annual tax revenue of $873,702. The Buckhorn Village project has the potential to individually exceed the tax revenue of the existing 12 establishments combined. In terms of commercial development, the Buckhorn Village project is a significant economic development project that will provide a significant revenue impact to the County. In addition to property tax revenue to Orange County, Efland Fire District will receive property tax revenue for one year, after which the site will be annexed by the City of Mebane. The tax revenue gain to Efland Fire District cannot be calculated at this time because it is unknown what percentage of construction will be completed, and, therefore, taxable during the one year it is in the district. However, the district will receive some new property tax revenue for that one year. Lodging Tax Analysis There are two hotels planned for Buckhorn Village. Due to Orange County's lodging tax, there will be lodging fees generated for the County. Based on 200 hotel rooms and an annual Sanford Holshouser 9 Orange County: Buckhorn Village average occupancy of 70%, Orange County would receive $91,980 in net new lodging fees. This calculation will change if the lodging tax is increased from 2% to 3% as proposed. Lodging Tag Analysis Rooms in 2 Average Projected Room Lodging Tag Estimated New Hotels Daily Room Occupancy Revenue Rate Tag Revenue Rate 200 $90 70% $4,599,000 2% $91,980 Source: Calculated from Buckhorn Road Associates, LLC Survey and East West Partners Information dZetail Sales ~'ax Analysis The largest fiscal impact to Orange County from Buckhorn. Village will be in new retail sales tax revenue. In fact, retail sales taxes could equal more than four times the net new property tax revenue. The consulting team conducted an analysis of projected retail sales tax revenue based on information gathered in the Buckhorn Road Associates, LLC retail survey and information from East West Partners. North Carolina levies a 4.5% retail sales tax and counties can levy a 2.5% retail sales tax which is returned to the county and shared with municipalities. Tax revenue is shared on a per capita or ad valorem proportional basis. A few counties have additional levies such as a public transportation levy in Mecklenburg County. Orange County's local sales tax rate is 2.5%. Retail Sales Tag Analysis SF Estimated Projected Local Estimated Sales Per SF Total Sales Sales Tag Tag Revenue Volume Rate Anchor/Destination 165,000 $400 $66,000,000 2.5% $1,650,000 Retail Other RetaiU 859,000 $200 $171,800,000 2.5% $4,295,000 Restaurant Hotel Food and 120,000 $0.83 $100,000 2.5% $2,500 Bevera e Total Projected Retail $237,900,000 Sanford Holshouser 10 Orange County: Buckhorn Village Sales Total Projected Sales $5,947,500 Tax Revenue . Source: Calculated from Buckhorn Road Associates, LLC Survey and East West Partners Information Retail Economic Review The consulting team reviewed existing retail sales and retail sales tax revenue data to place the above information in context. Retail sales and retail sales tax information was gathered from the NC Department of Revenue which regularly reports the information in the annual State Sales and Use Tax Statistics report. Orange County staff report that the County retains about half of the retail sales tax revenues and the other half is distributed to municipalities. Orange County Taxable Retail Sales and Retail Sales Tax Collections 2005-2006 Taxable Retail Sales 2005-2006 Retail Tax Collections 2006-2007 Taxable Retail Sales 2006-2007 Retail Tax Collections Total $907,564,371 $40,822,603 $948,302,963 $41,765,632 1% $6,181,427 $62,200 $518,533 $5,092 2% and 3% $1,061.982 $25,483 $2,025,017 $53,219 A arel $25,028,824 $1,133,752 $24,800,661 $1,090,740 Automotive $45,934,632 $2,079,808 $52,016,868 $2,3.16,892 Food $330,368,526 $14,949,810 $369,280,198 $16,261,090 Furniture $24,458,457 $1,113,328 $23,000,577 $1,022,947 General Merchandise $173,807,817 $7,856,122 $185,031,160. $8,147,212 Lumber and Building Materials $154,687,206 $6,992,498 $147,086,886 $6,471,969 Unclassified $146,035,500 $6,609,602 $144,543,063 ~ $6,396,472 Source: NC Department of Revenue, State Sales and Use Tax Statistics For Fiscal Years 2005-2006 and 2006-2007 The above table shows that the estimated retail sales of Buckhorn Village of $237.9 million equals a bit over 25% of the total existing retail sales in the County during 2006-2007. The development will boost total County retail sales to almost $1.19 billion. Whereas the retail sales of Buckhorn Village would boost total sales by 25%, retail sales tax revenues would be increased by 14.2%. Sanford Holshouser 11 Orange County: Buckhorn Village The number of retail establishments in Orange County is estimated to be 955 in 2007. Based on the 2007 population estimate, there are about 130.5 people in Orange County for every retail establishment. Alamance, Wake, and Cabarrus Counties have lower numbers of persons per retail establishment than Orange County. Based on this information the Orange County market place is not saturated with retail establishments given the higher people to establishment figures of comparable communities. 2007 Retail Establishments County Number of Retail Establishments People per Establishment Oran e 955 130.5 Alamance 1,176 122.9 Chatham 353 169.3 Durham 1,927 132.2 Wake 6,605 122.9 Cabarrus 1,257 127 Johnston 1,138 137 Source: ESRI In raw numbers, Orange County's retail sales rank near the bottom of the group. Only Chatham County's sales are lower and Chatham County's population is significantly less than Orange County's. This information, along with low people to establishments ratio, makes a case that Orange County's retail market is underserved and dollars are flowing out of the community. 2006-2007 Taxable Retail Sales and Sales Tax Collections Counties Taxable Retail Sales Sales Tax Collections Orange $948,302,963 $41,765,632 Alamance $1,371,732,692 $59,966,191 Chatham $301,018,001 $13,214,818 Durham $3,796,970,577 $166,292,584 Wake $11,262,239,398 $494,403,505 Cabarrus $1,882,429,350 $82,429,237 Johnston $1,135,891,639 $49,629,694 Source: NC Department of Revenue, Sales and Use Tax Statistics Sanford Holshouser 12 Orange County: Buckhorn Village To give another perspective to the numbers above, a review of per capita statistics were analyzed. Orange County's retail sales and retail sales tax collections are near the bottom of the group with only Chatham and Johnston Counties being lower. Alamance County's per capita sales and tax collections are the neat highest after Orange County. This table reflects, as the ones above, that the Alamance/Orange County retail marketplace is not saturated and is leaking retail dollars. 2006-2007 Taxable Retail Sales and Sales Tag Collections Per Capita County Sales Tax Collections Retail Sales Orange $335.20 $7,610.88 Alamance $414.97 $9,492.57 Chatham $221.11 $5,036.69 Durham $652.81 $14,905.69 Wake $609.23 $13,878.67 Cabarrus $516.44 $11,793.78 Johnston $318.24 $7,283.50 Source: NC Department of Revenue, Sales and Use Tax Statistics The consulting team examined per capita, median household, and median household disposable income to ascertain the income differentials impact. The table below shows the income levels of the seven counties. Orange County's per capita income is the second highest; however, median household and median household disposable income are in the middle of the group with Durham, Wake, and Cabarrus Counties all higher. 2007 Income Information County Per Capita Median Household Income Median Household Disposable Income Oran e $35,229 $54,157 $42,268 Alamance $24,308 $48,368 $37,983 Chatham $28,802 $53,182 $41,106 Durham $30,245 $55,861 $43,333 Sanford Holshouser 13 Orange County: Buckhorn Village Wake $36,635 $72,665 $53,787 Cabarrus $27,320 $58,493 . $44,547 Johnston $23,373 $51,896 $39,776 Source: ESRI 2007 Median Household Disposable Income as a ratio to Retail Sales and Retail Tag Collections County Retail Tag Collections Taxable Retail Sales Oran e 1:998 1:22,435 Alamance 1:1,578 1:36,114 Chatham 1:321 1:7,322 Durham 1:3,837 1:87,623 Wake 1:9,191 1:209,385 Cabarrus 1:1,850 1:42,257 Johnston 1:1,247 1:28,SS7 Source: ESRI The consulting team prepared the following ranking to show the impact that differential income plays in retail sales in the comparable counties. Orange County has the fourth highest median household disposable income but ranks 6~' in the ratio to retails sales. This is another indicator of retail leakage. ®range County Rankings Ranking of Median HH Disposable Income _ , 1. , Wake 2. Cabarrus 3. Durham 4. Oran e S. Chatham 6. Johnston 7. Alamance Ranking of Ratio of Med. HH Dis osable Income to Retail Sales 1. Wake 2. Durham 3. Cabarrus 4. Alamance S. Johnston 6. Oran e 7. Chatham Source: Calculations from ESRI Data Sanford Holshouser 14 Orange County: Buckhorn Village Employment and Wage Analysis The Buckhorn Village project is estimated to create 1,133 jobs in the retail and the accommodation and food services sectors. An estimated 300 of the jobs will be employed at an anchor retailer. Another 515 jobs will be in the mixed retail establishments. Restaurants are projected to employ 270 and 48 are estimated to be employed at two hotels. This section of the report analyzes the impact of those jobs on the Orange County economy. Orange County Labor Force 2006 Annual 2007 Annual March 2008 Total Labor Force 67,334 67,405 67,534 Source: NC Employment Security Commission When examining the labor force, one particular note of interest showed up. The growth rate of the labor force has lagged behind the growth rate of the population. Typically, if jobs are being created as people move into the community, the labor force and population will grow at approximately the same rate. In Orange County, the annualized labor force growth rate from 2000 to 2007 was 0.58% while the annualized population growth rate over that time was 1.12%, almost double the labor force rate. Labor force growth is attributed to government employment as opposed to private sector employment. The 2000 US Census showed that 27% of Orange County residents out-commute to Durham County. It is expected that more out-commuting is taking place, given the review of labor force growth as compared to population growth. Orange County leadership should take note that job creation is important to maintaining a live, work, play community. Below are the currently reported employment levels for the retail trade and the accommodation and food service sectors, those that specifically apply to the Buckhorn Village Sanford Holshouser 1 S Orange County: Buckhorn Village project. Generally referred to as the hospitality sector, it is called the accommodation and food service sector by the North American Industrial Classification Code system. Both sectors have shown growth in recent years. Orange County Employment: Retail and Accommodation and Food Service Sectors 2006 Annual 2007 3Q Total Em to ment 59,517 62,656 Retail Trade Em to ment 6,473 6,664 Accommodation and Food Service Em to ment 5,156 5,324 Source: NC Employment Security Commission The employment figures in the table below show that Orange County has one of the lower employment percentages in the retail and accommodation and food service sectors. The rate of 10.6% in retail is second to the bottom following Durham County. The accommodation and food service percentage at 8.5% is in the middle of the range. This supports that Orange County has a higher number of accommodation and food service establishments and fewer retail. People may not shop in Orange County but they do eat and stay overnight. 2007 Third-Quarter Retail and Accommodation and Food Service Employment as a Percent of Total Employment County Retail Trade Accommodation and Food Service Orange 10.6% 8:5% Alamance 13.3% 9.6% Chatham 10.8% 6.1 Durham 7.3% 6.4% Wake 11.2% 8.2% Cabarrus 15.6% 10.5% Johnston 14.1 % 9.3% Source: NC Employment Security Commission Another important data point to analyze in this project is wages. Retail and accommodation and food services wages are among the lowest of any sector, in part, due to the Sanford Holshouser 16 Orange County: Buckhorn Village part-time schedule of many of the positions. The average weekly wage in retail trade in Orange County is $430.31 and $280.79 in the accommodation and food service sector. Even though retail and accommodation and food service jobs pay less than the average wage, it does not mean the jobs are unimportant to an economy. Flexible scheduling offered by these jobs appeal to students, two-parents-working households, seniors, and others. Also, a portion of every labor market includes unskilled labor desiring entry level positions offering stable, consistent employment. The key point garnered from wage information, is that the majority of jobs created by Buckhorn Village will not be "bread-winning" or "relocation" wages and, therefore, will not cause people to relocate to Orange County. If the Buckhorn Village project were a technology company offering average wages of $60,000, it would attract people to relocate. Because of the lack of incentive for relocation, the impact on schools, residential services, and transportation will be minimized. 2007 Third-Quarter Wages County Avg. Retail Weekly Wage % of Avg. Total Weekly Wa a Avg. Accomm. and Food Service Weekl Wa a Avg. Total Weekly Wage % of Avg. Total Weekly Wa e Orange $430.31 53.9% $280.79 $798 35.2% Alamance $430.77 70% $236.75 $61S 38.5% Chatham $489.50 83.2% $237.34 $S88 40.4% Durham $438.76 39.7% $313.32 $1,104 28.4% Wake $519.76 64.2% $283.74 $810 35.1% Cabarrus $427.72 63.6% $256.49 $672 38.1% Johnston $420.08 68% $230.53 $618 37.3% Union $471.28 71.8% $219.60 $6S6 33.5% Source: NC Employment Security Commission Sanford Holshouser 17 Orange County: Buckhorn Village Construction Impact The "Economic Impact of Buckhorn Village, Orange County, NC," report analyzed the economic impact of the construction phase of the project. The study used an estimated $138 million in construction costs, slightly less than the $143 million figure used for this analysis. Using the well-known IMPLAN model, the study found that 1,332 jobs would be created during the construction phase. About 932 of the jobs would be in Orange County and about 400 outside the County. Additionally, $2.18 million in sales tax revenue would be realized during construction, of which $875,000 would remain in County. IlVIPLAN is a predictive input-output model that estimates the effect of an increase in investment on a specified economy. Cost of Public Services: Public Safety, Infrastructure The potential impact on Orange County public services was reviewed. In all economic development projects there are financial impacts on public services. In the case of Buckhorn Village, public safety services will become the responsibility of the City of Mebane within one year from the onset of construction or the Certificate of Occupancy, whichever is later. Orange County will incur minimal public safety cost during the one year construction period. Water and wastewater services will be provided by the City of Mebane from the outset. Electric, telecommunications, and natural gas will be provided by private utilities. The County will have the benefit of the project without the costs associated with public safety and infrastructure. Housing and Schools The consulting team reviewed the impact on public schools directly related to potential new housing. More housing typically means more children in schools and other public service impacts. The 2006 NC State study of cost of services, "The Cost of Community Services in Sanford Holshouser 18 Orange County: Buckhorn Village Orange County," shows that for every one dollar the County spends on services, Orange County realizes $0.76 from the residential sector and $4.21 from the commerciaUindustrial sector. This study assumed that public services would be offered by Orange County. In the case of Buckhorn Village, services will be provided by Mebane; therefore, increasing the return to Orange County beyond the $4.21 stated. The study went on to show that agricultural land generates $1.38 for each service dollar. Quoting from that study, "These fmdings for Orange County are consistent with the fmdings of nearly every Cost of Community Services study that has been carried out in other communities throughout the U.S. The degree of cross-subsidization of the residential sector - in particular, the extent to which the Orange County's commercial sector pays for services provided to its residential sector - is somewhat higher than the median in other studies that have been conducted nationally. Closer to home, the relative balance of revenues and expenditures across land use categories lies between what was found in comparable studies conducted in Chatham and Wake Counties." The report, and this study's consulting team, recognizes the importance of a diversity of land uses and the interconnection between living, working, and playing in a community. At the same time, a development that fueled residential development would bring additional costs that should be analyzed and evaluated. This study's research shows that there will be a minor impact on Orange County schools. What impact is felt will be related to the 200 multi-family residential units planned for the development. Some portion of the new housing units may be occupied by newcomers with school-aged children; however the impact will be small relative to the size of the development. Unlike in other areas where water and wastewater open significant land for residential development, the extension of infrastructure from Mebane will open land in the economic development zone, to be used for commercial and industrial development. Sanford Holshouser 19 Orange County: Buckhorn Village The Buckhorn Village project is unlike industrial development projects that fuel residential growth. The wages offered in retail and accommodation and food service businesses are not "relocation" wages. It is unlikely that people will move to Orange County for jobs other than key management positions. However, people that live in Orange County and drive to work in other counties for retail jobs will fmd this as an opportunity to live and work in the same area, reducing miles traveled. If any relocation is driven by this project, Alamance County is a more cost effective choice given that the median home value is $116,907 in Alamance County and $216,958 in Orange County based on Census data and projections. Orange County staff has information from Market Opportunity Research Enterprises, a market research and analysis firm, which show new and resale averages to be $329,006. Benefits of Opening New Economic Development Zoned Land One key long-term economic development advantage to Buckhorn Village is that it will bring infrastructure close to a 600-acre economic development zoned area and the 200-acre area with industrial land use. Orange County's land use plan, which dates to 1981, has designated this area for economic, commercial, and industrial development. An indirect benefit of the Buckhorn Village is that it will allow further implementation of the County's land use plan. Given the information above on the cross-subsidization of public services, Orange County should look for areas of implementation in the land use plan to provide employments centers for a variety of economic sectors; office, retail, services, light industrial. Creating employment centers in the County will reduce commuting, transportation strains, environmental impact, and create a sustainable development. Sanford Holshouser 20 Orange County: Buckhorn Village Spin-Off Businesses Each economic development project creates spin-off development. During the construction phase, sub-contractors of all types will be needed, as will sign companies, pavers, landscapers, etc. There will be ongoing spin-off through contracted services. In the case of Suckhorn Village, Orange County landscaping contractors will have opportunities to bid on new business. Some establishments may outsource security, maintenance, and other services. Creating new opportunities for small and entrepreneurial businesses is an important aspect to economic development and is inherent to projects of this size and nature. Environmental Impact This study did not include a full environmental impact review. However, the consulting team did research whether any environmental permits were required. Other than standard development permits such as storm water run-off and construction permits, the project will require no special air or water quality permits beyond adhering to `Neuse River Rules.' Sanford Holshouser 21 Orange County: Buckhorn Village Methodology This report is submitted to Orange County as an expert analysis of the Buckhorn Village project. Sanford Holshouser used public and private data sources, information from previous studies, and interviews with Orange County staff to develop the findings in this report. Public data sources include state and federal agency reports such as NC Department of Revenue publications and the U.S. Census. The private data source used is ESRI, a recognized world leader in geographic information system technology. ESRI data estimates and projections are based on the 2000 U.S. Census. Information gathered from previous reports is cited in the reference section. The Barnes study, which derived its data from interviews with East West Partners, provided most of the project-specific data. The Orange County Assistant Manager and Planner provided project information in two meetings with the consultant. Direct impact conclusions were drawn from quantitative analysis of the data. Generally accepted means of computing and comparing economic and demographic data were used. In addition to direct impact conclusions drawn from data, professional opinions were rendered in this study concerningrridirect impacts. The professional opinions contained herein are based on Sanford Holshouser's partners' more than 120 years of direct economic development experience. Our opinions are based on firsthand knowledge of developing property, local government financing, permitting, labor force patterns, economic and demographic data, and analyzing public services. Based on the data sources utilized, and Sanford Holshouser's longtime direct economic development experience, this report represents an expert level of review and analysis of the Buckhorn Village project. Sanford Holshouser 22 Orange County: Buclchorn Village APPENDIX -Orange County Land Use Map of Development Area Land ~Jse Element of the Orange County Comprehensive Plan t-~ ~\ ~` ``/ Jt~ ~ tl,•r • r lit -~ iTt_-r.^_ m I ~, y ~,~ / r~, v 1--t r,~- 1 I 13~ , I. \G P /ffi' r I _ ~ 1 l- ~ ~~: ~ , ~ . I i / ~ P I ~ ~ l ~ ~ w ~~ r: i I ~. ~~ t,- ~ ~'1 11 ~,i ~ y; 3 L` dtir.;;,~~.1 ~ ;1J .iH _ A \ 1 ) ~' ,r i i i Il' G legend: ~ ~ c ~ ~'"(~' 'v -~ ~' -~}~ Q to year bare bon t ' ,~ rye Q:V year trans bon ~, J° ~ l "'f ~'- ~ ~ ~~r. •~ ~~~~ QRural Resrtlenbal ~ \. 11 r 1 I ~ n• ~~ _ ~RUml eutlOr f ~ Q nctilitsnl Ro;rdpnbal I~ ` Ilil ~_1 Ott ~li~ ~ ~ r d~ ~~~~"~ /.,~ a :ourEeProiEdwnPreos I lAUn nPai E+lra TEmtOnal Junsdclron I~~ t~-~ ~ s ~ I ~~Y ~~~ ~:1~ ~,~~ ~lAUmaPN Tm+nl mts ;. ~ ~f ~ ~" ~ ~- ~ i -.-; 1 - QFUarc ln:nro:; rroo: y ~ f-~ f ~11rJ,.~' / ~(/`} ~{/~ ~ ~ ••s, hlor St.PGY Wotorhta: ~c~}~~ --r ~--J '_11l V4rr'/f~/'~ Iii//~ `~(( ~,~' WS'ursnnd CnCCOI Picas l~f,~~... "" I I„' 1 7f ~ f~ r AuvAV NOdn: ~ fI- ~ 4 Ir _J~ ~ ~. f~~ vt=~. l!'~l~j-~ ~RUml Communty l7otle ~j _ ~ ~ C~ I `L- ~r,~ , ,/ r J ~ , QRUmI Nnr~l'boihmtl(JOde ~T1 ~1 I ''(jlifj 1%iz ~~ Rural lnm,:mmb,eae ~ L,=~1^ _;~ ~ t i ~ ~ ~ •., i_! ~/./r con•mora~ulodo ~~ ~ <rl ``1~~, N~~ fJE ~s~~ pCOmmer~auVlnou9n~MOC1+ T ~r 1 .`-~i ~} ~ ~ _ J ;t7~ ° ! ~.I 'i `~ ` r~ I IEcenomn(MveloPment ~~-~t_ ~-1, ' ~ t'~~ ~ r r}'~ ~P !``_ ~ 1 !p~;~!r~I!' Macw.a~ormRmnn:,~nran `J ~ ~ ~ ~ ~t i I (~ e"jj ~ 1 ~c%~~e r / ~ , ~a a- n t , Mlies -~ l LJ ~ ~~- ~- o~ ~ ~'~~ ~ - ~ I 1 inch equals 1 miles 9 I 7~ I ~ ~ G ~Cy l~ } tran:e CnuttVPl.nrrtp eN ln5eE11mfbWRntrt l J ~~ ~ T l~l [~ 1. ~- 1 I~{ ~ GSNm Prv?CW EnvaCx:m Ttl3 top/mrlN M>/Ot,;tpP p 1 ! YI ~ 1 ~ t ~ ~' 1111 ~I -~ ;;me (` ttu my t+e vnm'<n •!nv r: rehrtnte Ul2ttry ~_ fe? Y i ~. l ~~y~~~ w". .<trru~msr:,rst~~:Y/.m>•,~~ _ _.~. ~I ~ ~ \.-~-- ~YT L~- , ~ \ [(~,,,(('' ~-~ I ~- VKAn(bYr ilbmCDt(4N 9ak mlf~E llMl1 1 ~~i~ y_~ J f ,~~P'~ ORV~IIO'.trPY[14Y11nN Sanford Holshouser 23 Orange County: Buckhorn Village References Barnes, Zakia, Economic Impact of Buckhorn Village, Orange County, NC, University of North Carolina at Chapel Hill, 2008. Buckhorn Road Associates, LLC, Orange County Tax Value Analysis, 2008. ESRI, Business Analyst Online, www.bao.esri.com. N.C. Department of Revenue, State Sales and Use Tax Reports.by Fiscal Year, http://www.dor.state.nc.us/publications/fiscalyearsales.html, 2005-06 and 2006-07. N.C. Employment Security Commission, Labor Market Information, http://www.ncesc.com/1mi/default.asp?init=true, 2006 and 2007 Third-Quarter. N.C. Office of State Budget and Management, State Data Center, 2006 Certified Population Estimates, http://www.osbm.state.nc.us/ncosbm/facts and figures/state data center.shtm, 2006. Renkow, Mitch, The Cost of Community Services in Orange County, Department of Agricultural and Resource Economics, NC State University, 2006. U.S. Census Bureau, Census 2000, www.census.gov. Sanford Holshouser 24 %~ ~> :y~ ~ f~~~n ~~,i. The Sanford 'ea].shaiuser 8usiness'~evelopmen~ Group. THE S,ANF®RD HOI.SH®USER B~.7SIlOTE~S DEVEL®1'MEleTT Gl2®UI', I..I.C The Sanford Holshouser Business Development Group is an innovative and growing economic development consulting firm that provides action planning, site selection services, and unique strategies to communities, organizations, and companies worldwide..Affiliated with the law firm Sanford Holshouser, LLP, our firm proudly continues the legacy of integrity and leadership and furthers the visionary economic development ideas of the firm's founders, former US Senator and NC Governor Terry Sanford and former NC Governor Jirn Holshouser. Sanford Holshouser's six partners' direct economic development experience includes: ~~~ marketing and business recruitment ~~ existing industry retention and expansion ~~ site selection small business development ~~ infrastructure development workforce development industrial, business, and research park development shell building development site certification %+~ utility related economic development programs ~}~ entrepreneurial initiatives ~ structurin.g economic development organizations operational strategies for EDOs rs incentive negotiations ~~~ incentive policy development and a range of other economic development strategies THE SAiVFORD HOLSHOUSER SUSIIVESS DEVELOPMENT GROUP LLC PO Box 5646 Carp, NC 27512-5646 919-755-1800 www.sanfordholshouser.com ~:~. ~ .. ~ S~ t ' ~~. I . ;::ti,:_ The~Sa`n~Ord NalshapSer Busipess,sDevelopraent,,~Group Sanford Holshouser Setvrces Site Selection ~$ Selection Criteria -assist companies in developing location importance factors. ~~-,- Search -comprehensive search for sites and/or buildings that meet client needs. Comparisons - develop a standardized cost/benefit comparison of communities. *~'- Incentive Negotiating -negotiate fair, reasonable incentives for a long term partnership between the company and community. Operations and Management w Strategic Planning -action planning that provides unique solutions to communities with a focus on sustainability and implementation. Board Development -assist ED boards in building leadership roles; retreat facilitation. Executive Search -recruit the qualified professional for pour program; negotiate the contract. '~ Bridge Management -professional management of the economic development program during the executive search. ~~ Private Sector Partnerships -assess the current organization and program and capitalize on partnerships with the local private sector. ~= Fundraising -through association with one of the nation's best professional economic development fundraising groups. Program Development ~~ Local Program Development -assist communities in broadening their ED program by developing strategies for Business Retention and Expansion, Workforce Development, Small Business Assistance, Entrepreneurship and Agribusiness. Marketing -through association with the nation's leading lead generation firm, qualify leads, reaching the decision makers who are managing active projects; target-market analysis to enable the recruitment of companies that are compatible with the community. Client Handling -ensuring prospects are provided professional treatment. Product Development ~:- Product Development -industrial/business/technology park development; shell building programs; consortium financing; site certification/qualification; brokerage; land banking; product development deal structuring; multi-jurisdictional industrial parks. Incentives and Financrng ~ri Incentives Negotiations -ensure the deal is right for the community. ~~ Incentive Policies -assist communities in developing policies that protect investment. ~- Financing -strategies for financing product development and program operation. THE SANFORD HOLSHOUSER BUSINESS DEVELOPMENT GROUP LLC PO Box 5646 Cary, NC 27512-5646 919-755-1800 www.sanfordholshouser.com ~` ~ w~~ ~: The Sanford Halsbouser Busl:ness. iDevelopman~, Group Sanford Holshouser Partners • Governor Holshouser participates in the Business Development Group's consulting projects involving economic development policy. • Ernie Pearson is North Carolina's leading expert on incentives, incentive policies and structuring product development initiatives and nonprofit economic development activities. • Bob Comer has specific experience restructuring economic development organizations. • Crystal Morphis specializes in existing business, product development and comprehensive economic development planning. • Rocky Lane's specialties include workforce development, training and existing business retention and expansion. • Mike Geouge has extensive experience in city planni~ig and electric utility related economic development issues. • Bob De Mauri has more than thirty-five yeaxs of experience in economic and community development at the local, regional, and state levels. Governor James E. Holshouser, Jr. has been involved in public service throughout his career as a lawyer dedicated to his clientele, a state representative, Governor from 1973 to 1977, and by service in numerous public and private sector boards, such as the UNC Board of Governors. During his tenure as Governor, North Carolina saw a number of economic development "firsts", to include the first North Carolina overseas recruitment office in Germany and the first time this state had total new investment to surpass one billion do]lars. He has guided and participated in policy matters related to economic development initiatives from local to the state level. Ernest C. Pearson has served both in the private practice of law and in public policy positions. He served as Assistant Secretary for Economic Development of the NC Department of Commerce. He managed economic development programs, including industrial recruitment, international trade, small business development, tourism, film industry recruitment, and finance programs for industry. Since returning to the private sector in 1993, his law practice has focused on economic development matters, representing numerous local jurisdictions in economic development projects and companies in site selection projects. Robert F. Comer has developed strategic action plans, organizational restructufing and privatization, marketing plans, personnel policies and funding campaigns for several local and regional economic development organizations in North Carolina. A local developer for 15 pears and a pioneer in regional economic development, Bob most recently was chairman of Piedmont Triad's regional economic development Foundation. A retired US Navy Captain, Bob graduated from UNC-Chapel Hill and has a Master Degree equivalent from the US Naval War College. THE SAIVFORD HOLSHOUSER BUSINESS DEVELOPMENT GROUP LLC PO Box 5646 Carp, NC 27512-5646 919-755-1800 www.sanfordholshouser.com ~y a, rv . ~~~ T ~8us~nessfDevelopmen~ Group Crystal P. Morphis, CEcD, has over 10 pears of direct economic development experience. She has experience in developing industrial parks, site certification, marketing, existing industry program development, strategic planning, private sector fundraising, executive searches and research for economic development. She serves on the Advisory Board for NC State University's Industrial Extension Service and is an instructor at the UNC-Chapel Hill Basic ED Course. Crystal holds a Bachelor of Arts in Economics from Salem College and a Master of Science in Economics from UNC-Charlotte. L. Calvin "Rocky" Lane, Jr., has over 13 years experience as an economic developer and 15 pears in workforce development. During that tenure, he was responsible for developing a fully serviced industrial park, a shell building, two NCDOC Certified Sites, an award wv~ning marketing program, and the successful recruitment of 17 new companies and numerous expansions representing over $1.5 billion in new investment and over 2000 new jobs. Rocky served in various positions with Halifax Community College for over 13 years, the last three as Dean of Continuing Education. He holds Bachelor and Master Degrees from N.C. State University. Michael K. Geouge, CEeD, has over 37-years of economic development and city planning experience. He has been the Manager of Economic Development for Duke Power/ Nantahala Power, manager of the western regional office of the North Carolina Department of Commerce and spent 15-pears experience as a city planner and/or planning director with the states of North Carolina, Tennessee and Mississippi. He has participated in over 300 industrial client visits and in nearly 100 industrial client announced locations. He earned a Bachelor of Science in urban geography from East Tennessee State University. Robert S. De Mauri, AICP, has more than thirty-five years of experience in economic and community development. He has held positions with local and state governments as well as in the private sector and was Director of the Thomas Jefferson Partnership for Economic Development in the Charlottesville, Virginia region. His experience includes preparing economic development strategies, marketing plans and local land use plans and ordinances. He has also worked with companies to provide site location assistance while evaluating the competitive advantages of communities. He earned a Bachelor in City Planning from the University of Virginia. THE SANFORD HOLSHOUSER BUSINESS DEVELOPMENT GROUP LLC PO Box 5646 Cary, NC 27512-5646 919-755-1800 www.sanfordholshouser.com ~Y .~,~ ~ i~ ~.; ~ ; 'fhe Sanford 'HalshGaBer Business rDevelopaar+t Group Current anal Previous EDC/Government Clients of The Sanford Holshouser Business Development Group and Sanford Holshouser LLP Advantage West Regional Partnership, NC Albert Lea, MN Alleghany County, NC Anson County, NC Ashe County, NC Avery County, NC Carteret County EDC, NC Catawba County, NC Chester County, SC Chesterfield County, SC On behalf of ElectriCities, Inc. City of Albemarle, NC City. of Chenyville, NC City of Gastonia, NC City of High Point, NC City of Kinston, NC City of Laurinburg, NC City of Lexington, NC City of Lumberton, NC City of Monroe, NC City of Morganton, NC City of Newton, NC City of Shelby, NC City of Statesville, NC Clay County, NC Craven County, NC Cumberland County, NC Danville, VA Davidson County, NC Elizabeth City State University, NC Gates County, NC Halifax County, NC Harnett County, NC Henderson County Partnership, NC Hertford County, NC Hoke County EDC, NC Hyde County, NC Isedell County, NC Jones County, NC Kerr-Tar Regional Council. of Governments, NC Lee County, NC Martin County, NC New Hanover County North Carolina Department of Commerce North Carolina's Eastern Region North Carolina Motorsports Association North Carolina Northeast Partnership North Carolina's Southeast Northampton County, NC Pamlico County, NC Pender County, NC Piedmont Palmetto Economic Development Alliance, SC Research Triangle Regional Partnership, NC Rockingham County Partnership fox Economic & Tourism Development, NC Rutherford County, NC Salisbury-Rowan EDC, NC Sampson County, NC Stanly County, NC Sung County, NC On behalf of ElectriCities, Inc. Town of Apex, NC Town of Ayden, NC Town of Benson, NC Town of Clayton, NC Town of Cornelius, NC Town of Drexel, NC Town of Fatmville, NC Town of Huntexsville, NC Town of Landis, NC Town of Louisburg Town of Maiden, NC Town of Selma, NC Town of Smithfield, NC Town of Wake Forest, NC Town of Granite Falls, NC Town of Cary, NC Town of Clinton, NC Town of Fuquay-Varina, NC Town of Ellcin, NC Town of Holly Springs, NC Town of Navassa, NC Town of Red Springs, NC NC Seafood Industrial Park Authority/Wanchese Seafood Industrial Park, NC Wayne County Development Alliance, NC Washington County, NC Yadkin County Chamber of Commerce, NC Yancey County, NC Yancey County EDC, NC York County, SC THE SANFORD HOLSHOUSER BUSINESS DEVELOPMENT GROUP LLC PO Box 5646 Cary, NC 27512-5646 919-755-1$00 www.sanfordholshouser.com Er ~{. 1~ ~ ~~7 (,; The; Sanfi~rt- Ha].shous.er Business tfeveiopment_6roup .x'":89.;:. <rM C?:~ s~~€u?~. The Sanford Holshouser Business Development Group and Sanford Holshouser, LLP, have been involved in some or all of the site selection process for the following companies. 3C Alliance LLP -Battery manufacturer Qapanese/Ge an/US joint venture) 3 Tex, Inc. -Composite materials manufacturer Ann's House of Nuts, Inc. -Snack processing and packaging Anpota Development Inc. - Concrete manufacturer (Jamaican) Applied Distribution Resources, Inc. -Distribution Biosignia, Inc. -Serum marker analysis Biotron Waste Research, Ltd. -Waste recycling (Canada) Blueberry Plastic Mill Corp. -Plastics recycling Citterio USA, Inc. -Specialty meat processing and packaging (Italian) Corrugated Container Corporation -Corrugated container manufacturer Cott Beverages USA, Inc. -Beverage bottler (Canadian) Cranberry Clouds Ltd. -Furniture manufacturer (England) Dudson USA, Inc. -Distribution of institutional china (England) Duracell Battery, Inc. -Joint venture partner in 3C Alliance Environ Products -Rotational molding manufacturer and headquarters EnviroTire Recycling Technologies LLC -Tire recycling (Canada) Formscape LLC -Electronic form systems (England) Gailey & Lord -Textile fiber manufacturer GoGo Motorsports USA, LLC -Scooter assembly/distribution (China) Hickory-White Furniture Company -Furniture manufacturer Intercord Technische Faden, GmbH -Industrial/tire cord manufacturers (Germany/Turkey joint venture) Kordsa, Inc. -Industrial/Tire manufacturer (Germany/Turkey joint venture) Just Care, Inc. -Private prison hospital facility Liberty Hardware Manufacturing Corporation -Distribution of hardware for fiimiture manufacturers Logic Marine Corporation -Boat manufacturer (Lndonesia) Magma Entertainment Corp -Animal bedding manufacturer Matisse Derivan (USA) Inc. -.Artist paint manufacturer (Australia) Meadows Metalcraft LLC -Lamp manufacture (Dubai) Miza Pharmaceuticals, Inc. -Pharmaceutical packager (Canada) Norske Skog Industries ASA -Flooring manufacture (Norway) North Carolina Quadel Consulting Corporation -Data processing Novo Nordisk Pharmaceutical Industries, Inc. -Production facility Parton Family -Theater and entertainment district Rerycling Earth Products, Inc. -Recycling building materials Royal Laser Technologies, Inc. -Component manufacturer Rutherford Motorsports, LLC -Motor scooter/rycle distribution Sherrill Furniture Company -Furniture manufacturer Spectronic Plating -Plating components for computers (Canada) Tensor Machinery -Furniture component manufacture (Canada) Texel, Inc. -Non woven fabrics manufacture (Canada) Toshiba Battery, Inc. -Joint venture partner in 3C Alliance Qapan) Varta Batterie AC -Joint venture partner in 3C .Alliance (German) THE SANFORD HOLSHOUSER BUSINESS DEVELOPMENT GROUP LLC PO Box 5646 Cary, NC 27512-5646 919-755-1800 www.sanfordholshouser.com