Partnership essential in biz recruiting

Secretary of Commerce addresses Board of Directors

By Jason King
Assistant Communications Director

Secretary of Commerce Keith Crisco told members of the NCACC Board of Directors on Dec. 14 that while North Carolina has many advantages in the ever-competitive world of business recruitment, the state can continue to set itself apart through a collaborative approach and a strong partnership between the state and counties.

Gaston County Commissioner Joe Carpenter and Dare County Commissioner Virginia Tillett take part in an exercise to help faculty from the UNC School of Government – the NCACC’s partner for the Local Elected Leaders Academy – identify pressing issues for future educational offerings for elected officials. Click here for more photos from the Dec. 14 Board of Directors meeting. (Photo by Jason King)

Crisco’s presentation to the Board of Directors came on the heels of a meeting between Crisco, Governor Beverly Perdue and the NCACC Executive Committee in early November that largely focused on economic development.

Crisco, who as Secretary of Commerce is North Carolina’s biggest cheerleader in the business community, said that counties with an economic development corporation or personnel have a leg up in working with the state to lure and expand new business, but that county officials “can’t just hand it over to the hired hands.” He recommended that boards of commissioners designate one elected commissioner to be the point person on economic development projects.

He said that the state’s network of 58 community colleges also puts North Carolina at an advantage, and said that community college leaders should be more involved early in the process of recruiting an industry. Community colleges can offer customized training programs to businesses seeking to locate to or expand in North Carolina, and county commissioners should encourage community college leaders to “be flexible, and be ready to customize,” Crisco said.

“On workforce training, we smoke everybody.”

Crisco said that he continues to be amazed at how states are pushing the bar higher as they pitch themselves as the perfect landing spot for businesses. He said that as the state recently worked on bringing a data center project to Western North Carolina, he witnessed the competition make a great move after company representatives followed up a day-and-a-half visit to Virginia with a similar stay in North Carolina.

“We felt very good about it,” he said. “We took them to the Charlotte airport, walked them up to security … and on the other side of security, Governor [Robert] McDonnell shook their hands and said, ‘Let me spend 45 more minutes with you to tell you about Virginia.’ Frankly, that’s impressive. But that’s what happens all the time.”

Crisco said that while North Carolina is as well organized as anyone, the state’s 6.9 percent corporate income tax rate often registers as sticker shock with prospects.

“I have letters from many consultants … saying that if we could have significant reductions or elimination of the corporate tax, that will be a game-changer,” he said.

And while North Carolina tops all states in regulatory environment, according to a recent Forbes survey, it is not viewed as having the most business-friendly environment due to the complexity – or perception of complexity – of business tax.

“Texas is No. 1; Texas has zero tax,” Crisco said. “You can’t get any simpler than zero.”

“My nature is not to do incentives,” he added. “It’s just that our competition is doing it. … You’ve got to be smart about it. You don’t want to start throwing money around. You want to have performance-based incentives.”

The importance of a collaborative approach and layered incentives were not lost on members of the Board of Directors. Buncombe County Commissioner Bill Stanley asked Crisco for a status update on the recruitment of the New Belgium beer brewery, which was considering a site near Asheville for an East Coast brewery.

Crisco responded that he thought the state was in good shape, provided they do what the company asks.

“Buncombe County will do more than they want us to do,” Stanley responded.

“That’s what I want to hear,” Crisco replied.

North Carolina has established itself as being friendly toward craft breweries, and the General Assembly recently passed a bill that allows breweries regardless of size to hold tastings and sell beer on-site.

“All the profits from their tastings go to charity,” Crisco said of New Belgium. “Great company.”

Another industry that already has a solid footprint with room to grow in North Carolina is the film industry. Mecklenburg County Commissioner Jennifer Roberts asked Crisco about the state’s efforts to bring more television and film productions to the state.

“I don’t think we do a good job of measuring how important that industry is,” Crisco responded. “‘Dirty Dancing’ was done at Lake Lure I think 26 years ago. People still go there to look at where it was made.”

New NACo discount card gives counties revenue option

Board members granted authority to NCACC Executive Director David F. Thompson to enter into a new agreement with NACo for its Prescription Discount Card Program, in which 76 North Carolina counties participate. NACo was to begin sending to counties in January amendments to the program, which was subject to change following action taken by the NACo Board of Directors early in December.

The change gives participating counties the option of continuing with their current contract or switching to a new agreement that provides a participating county with $1 for each prescription filled when the NACo card provides the user with a discount. This new voluntary revenue sharing structure would impact the actual discount a user would receive: A resident of a county that accepts the optional revenue would receive a 22 percent discount, whereas a resident in a county that does not opt to receive the $1 per prescription filled would receive a 24 percent discount.

The new deal with NACo’s corporate partner for the card, CVS Caremark, provides 50 cents per prescription filled to NACo, which keeps 10 cents and distributes 40 cents to a state association endorsing the program.