Sign of the times: counties will work for jobs

As the state's unemployment rate jumped to 11.2 percent by the end of 2009, the NCACC Intergovernmental Relations Steering Committee tackled the difficult subject of job creation during its Feb. 23 meeting in Raleigh. From broadband to business incentives to economic development boards, committee members discussed a number of different strategies that counties can consider to spur job creation and economic development.

Jane Smith Patterson, executive director of the e-NC Authority, walked committee members through the benefits of having broadband technologies accessible and available at competitive prices. She said studies have shown that communities with new broadband access experienced an average 6.4 percent higher job growth than before they had broadband.

Patterson cautioned that the United States was far behind other countries with regard to broadband deployment, and that the Federal Communications Commission's definition of broadband will not support eLearning, HDTV, health screening or home businesses with high-bandwidth needs.

She also discussed the e-NC Authority's incentives for "middle mile" and "last mile" investments – only 11 counties do not have at least 70 percent availability of Internet access to their homes – and also touted the job creation benefits of the state's seven business and technology centers (BTTs), which are created and funded through e-NC.

With a return on investment of 71:1, the BTTs are credited with the creation of 1,675 jobs since their inception. The Authority, through a donation from MCNC, also received one of the first federal stimulus grants to map the entire state's broadband infrastructure. MCNC, a private nonprofit corporation established in 1980 to advance technology-led economic development and job creation throughout the state, was awarded nearly $30 million in stimulus funds to create and incent "middle mile" infrastructure in the far west and the southeast.

Guilford innovative with incentives

Steering committee member Kay Cashion introduced fellow Guilford County Commissioner Steve Arnold to describe the county's innovative commercial investment policy. In an effort to treat all new real property business investments as worthwhile and welcome, the county has adopted a new incentives policy that recognizes any increase in the real property valuation of at least $10,000. If an investment grant is approved, the owner of the real property may receive for three consecutive years a grant up to the amount of property taxes paid on the real property improvement value increase.

The investments are only for conforming uses, for properties not in violation of any applicable county or municipal code, and for real property owners not delinquent in paying any taxes or fees to the county or a municipality. Guilford County had contracted with Ernest C. Pearson, an attorney and economic developer with Nexsen Pruet LLC, to draft the Guilford County Commercial Investment Grant program. More information can be found online at www.co.guilford.nc.us/cig_09.php.

Commerce stands ready to assist

N.C. Department of Commerce Secretary Keith Crisco pledged to committee members his department's spirit of cooperation and flexibility to assist counties in attracting and retaining new business and industry. Secretary Crisco noted the changing landscape in economic development – more high-tech, high-investment but with fewer jobs attached.

In response to committee Chairman Brian McMahan's offer of county assistance to Commerce, Secretary Crisco relayed that the General Assembly was not likely to advance any major economic development initiatives during the short session. Instead, he said he believes that the current statutory language would need a bit of tweaking to stay relevant. His department could be seeking additional funding for advertising and for establishing new offices overseas in emerging and growing markets.

Secretary Crisco cautioned that several negatives were often broached in his business recruitment conversations – concerns with K-12 quality, corporate tax structure, and county-by-county variances in attracting businesses. Secretary Crisco did voice his concern over the lack of progress in tax modernization efforts. He also noted the need to review the makeup and profiles of the state's seven economic development regions.

Bonnie Renfro, president of the Randolph County Economic Development Corporation, described the State Economic Development Board's strategic planning efforts to improve North Carolina's competitiveness. Her committee, "Widely Shared Prosperity," was looking for county advice on barriers to regional resource and revenue sharing, and whether there was a lack of incentive to collaborate.

The committee was also investigating a permanent and steady revenue stream to finance infrastructure improvements, and asked if there are legislative solutions that need to be considered to give counties more flexibility or options.

The Intergovernmental Relations Steering Committee's next meeting is scheduled for Tuesday, May 18, from 1:30 – 5 p.m. at the Albert Coates Local Government Center in Raleigh.