50291-Economic-Growth - HTML County's Outlook For Economic Growth in 2012 Remains Positive

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html County's outlook for economic growth in 2012 remains positive

December 04, 2011 3:06 PM Chris Lavender / Times-News Will 2012 be Alamance Countys year? Maybe. Community leaders predict that this area is poised for economic growth in 2012, as they continue to work on toward developing a new plan to attract industry. During 2011, several job announcements were made in the county, but overall economic growth continued to be sluggish. Alamance County Area Chamber of Commerce President Mac Williams said there were at least 50 business prospects for the county with a majority taking aim at the North Carolina Industrial Park in Mebane, which is privately owned and operated. We started the year with strong activity, Williams said. The flow of prospect activity has been up and down all year. Several companies announced relocations or expansions this year. Ferraro Foods, Jet-Hot, Kidde Residential and Commercial and Kayser-Roth were among the companies making decisions to bring additional business to the county in 2011, Williams said. Alamance County will provide $62,250 in incentives to Ferraro Foods to move to the N.C. Industrial Park in Mebane in the coming year. Ferraro Foods plans to invest $6.2 million and employ nearly 60 workers at the site. Ferraro Foods is the only company that received an incentive deal from the county in 2011. During 2010, Alamance County agreed to provide incentive deals for Tri-Vantage and LabCorp for these companies additional investments. Since 2000, Alamance County has agreed to provide incentives for 10 companies that have provided job growth and capital investments. Williams said incentives are sometimes necessary to attract business but arent usually considered by either party until the end of any deal. The N.C. Industrial Park will continue to play an important role in the countys overall economic growth in 2012, Williams said. Williams said he is planning to provide a tour of the park this month for a prospect. There was also some interest shown for several other properties ready for industrial development in the region this year. Sites at Tucker Street and Whites Kennel Road were considered for development this year but remain on the market. Williams said most companies that first express interest in the county usually make initial contact anonymously through a third party. We respond to specific requests for information, Williams said. They usually first request information about real estate. The chamber serves as the regions economic development engine. County Manager Craig Honeycutt said the county provides $122,250 to the chamber while the countys
municipalities combined provide about $75,000 annually. These funds are used by the chamber to help market the region to business prospects. DURING 2011, Honeycutt and Williams traveled to Gaston and Davidson counties to see how other counties conduct economic development and use public funds to develop industrial parks. The trip to Gaston County was taken on Aug. 22. Assistant County Manager Tim Burgess, Mebane Assistant City Manager David Cheek, Burlington Director of Planning and Economic Development Bob Harkrader and Graham City Manager Chris Rollins also made the trip. The trip to Davidson County was taken on Nov. 23 to meet with the countys economic development team. Williams and Harkrader traveled with Honeycutt. Davidson County puts a lot of money into their infrastructure and land to develop its parks, Honeycutt said. Their fund balance is in better shape than ours so they have flexibility to buy land. Williams said last week he hopes to take additional trips to Orange and Randolph counties next year to continue to work toward developing a new economic development model. Honeycutt said last week he planned to present a report in the spring to the Alamance County Board of Commissioners about what he learned from these trips and how the county could work with its municipal leaders to develop a cohesive strategy to better position the region for growth. LOOKING AHEAD, Honeycutt said he believes the countys retail sales will continue to rebound from the recent recession. For the current fiscal year, the countys sales tax revenue has increased 8.4 percent, while overall revenues have increased $2.6 million with a $1.7 million decrease in expenditures. The retail sales tax base experienced a boost, Williams said. Tanger Outlets is a reason for that happening. Another economic tool utilized by the county is the Alamance County Economic Development Foundation. It was established nearly 10 years ago to help offset the regions economic development costs. During 2011, the foundation announced its goal to raise $1.6 million to provide 1,500 new jobs, attract $250 million in new capital investment by December 2016. Williams said the foundations private-sector fundraising efforts would conclude at the end of this month. He believed the $1.6 million fundraising goal would be met with continued support from the local business community. Taking a closer look at current economic conditions, Williams said there is still a lot of uncertainty for business leaders and that the 2012 presidential election results could reduce some uncertainty moving forward. I think in the coming year we are going to see some of the same things we saw this year, Williams said. Alamance County will still have its opportunities. ECONOMIC ACTIVITY in the county for 2011 was at its lowest point during late spring and early summer, Williams said. The beginning and end of the year remained the busiest period.
Economic development work is sometimes unpredictable, Williams said. My sense is that times remain difficult but Alamance County has stabilized. There werent any major company closings or shutdowns this year. Honeycutt also said he is optimistic about the countys prospects in 2012. Honeycutt said as 2011 winds down theres been an increase in companies requesting information about the county. The county doesnt plan to hire a full-time economic development director to attract investment and job growth. Honeycutt said the countys existing relationship with the chamber is enough to develop the local economy. We would spend more money if we take it on in-house ourselves, Honeycutt said. The relationship we have with the chamber works well. Honeycutt said some of the regions competitive advantages included the interstate system, water and sewer capacities, low taxes, public schools and universities. A new Heavy Industrial Development Ordinance will take effect Jan. 1 in Alamance County. Honeycutt said the new ordinance will provide more flexibility to companies searching for a place to expand or relocate. The commissioners approved the new ordinance in October. The new ordinance divides the countys industries into four categories based on the North American Industry Classification System, with each category having its own spacing requirement, from 250 to 2,000 feet. The categories spacing requirements were based on the industries pollution effects on the community. SEVERAL ECONOMIC summits were held locally in 2011. The Twin Lakes Community hosted a summit in May while Elon University did the same in October. John Metcalf of Workforce Systems Associates was a speaker at the Alamance County Area Chamber of Commerces leaders retreat in November. He shared a report on Alamance Countys economic condition. Alamance County has a lot of assets working for it, Metcalf said last week. Theres good logistics and a quality labor force. Metcalf said the Alamance-Burlington School System and Alamance Community College would continue to train a viable workforce. Those born outside the state would continue to move to North Carolina in 2012 to seek job opportunities. Metcalfs outlook for 2012 remained positive but slow growth is likely for the state and local economy. Rural communities would continue to show sluggish growth in the new year. Metcalf said the states debate over whether it should tap into its reserve natural gas supply using horizontal drilling and hydraulic fracturing, known as fracking, would continue. The N.C. Geological Survey, housed in the Department of Environment and Natural Resources, has concluded that a commercially viable reserve of natural gas may underlie parts of the Triassic basins of North Carolina. DENR officials believe there are commercially viable reserves of natural gas in Lee, Durham, Wake, Richmond, Anson, Yadkin, Davie Chatham, Moore, Stokes and Rockingham counties.
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