Regional Business Reports


Wilmington
See America's Tall Ship at Nautical Festival
The North Carolina Azalea Festival is a rite of passion for thousands of Wilmington residents and visitors to the area each April, and Port City officials are hoping the inaugural Wilmington Nautical Festival, set for July 25-27, will create a similar buzz. The festival will incorporate a variety of special events designed to celebrate the area’s nautical culture, among them educational and recreational activities that showcase the arts, history, culture and natural assets unique to Wilmington and the Cape Fear region.

Festival-goers will get an added bonus when the USS Coast Guard Barque Eagle — the largest sailboat you’ll ever see — docks for three days on the Cape Fear River along Water Street. Dubbed “America’s Tall Ship,” the Eagle will be open for tours on Saturday and Sunday, the 26th and 27th.

 There will be numerous other entertainment opportunities, such as a pirate ship, a parade of sail, children’s educational activities, Cape Fear Community College wooden boat show, art and museum exhibitions, and sea shanty music. A “Crab Dip Taste-off” spotlights local restaurants and civic groups.

“Wilmington’s 265-year history is rich with maritime activities,” says Wilmington Mayor Harper Peterson. “The Wilmington Nautical Festival will celebrate this significant cultural heritage, as well as bring tremendous economic benefit to our entire community.”

The highlight, no doubt, will be the Eagle, a three-masted sailing barque with 21,350 square feet of sail that was commissioned in 1942. It is homeported at the Coast Guard Academy in New London, Conn., and is the only active and operational commissioned sailing vessel in the U.S. maritime services. For more information about the festival, call 910-341-7855 or visit www.nauticalfestival.com. -- Kevin Brafford


Fayetteville
City's Reputation Soars on Festival's Success
Organizers of Fayetteville’s Festival of Flight say the 11-day event in late May exceeded expectations. “While official attendance figures are still being tallied, we already know that nearly 300,000 visitors enjoyed the Smithsonian-quality exhibits, the top-caliber air shows and other attractions,” says Gordon Clapp, festival director. Further, Festival of Flight provided a unique educational experience for more than 5,000 students who participated and were schooled on the importance of aviation in the military.

In addition, Clapp says the festival was successful in portraying a more accurate image of Fayetteville as a thriving and hospitable metropolitan area with a revitalized, historic downtown. “We enjoyed favorable publicity and focus everywhere,” he says, noting that journalists from as far away as the United Kingdom and Australia covered the event and came away impressed with Fayetteville’s attractions.

Utilizing the Festival of Flight as a backdrop, the Fayetteville Area Economic Development Corp. (FAEDC) seized the opportunity to organize a “CEO weekend” for corporate executives. Business leaders from companies in 11 states — from as far north as Massachusetts and as far west as California — attended the event. The majority represented aviation companies, including some of the major players in the aerospace industry.

In addition to attending festival events, the executives had the opportunity to learn more about opportunities for business and industry in the Fayetteville/Cumberland County area — and liked what they saw, according to John Swope, FAEDC vice president. “All of our visitors were impressed with our community and the economic development potential we offer,” he says. “They were impressed with the talents, dedication and quality of our workforce, including the men and women from our military bases.”

The effort already is paying dividends, as Swope notes that two companies are actively looking at Fayetteville/Cumberland County for immediate expansion or relocation and that five others have indicated that they will seriously consider the Fayetteville area for future expansion.  — Rosimar Meléndez


Durham
Biotech Training Center May Hel Create 3,000 Jobs
The state’s biotechnology companies expect to add 2,200 to 3,300 jobs per year through 2005, according to a survey conducted by the N.C. Biotechnology Center. Further, those job projections only include the companies already located in the state. Not included are employees that would be hired by any biotech manufacturing operations that are lured from other states.

Already, fast-growing companies such as Biogen and Wyeth Vaccines are finding it difficult to locate employees with the necessary skills. “We are in a situation where we are hiring each other’s people,” Biogen executive Hal Price told industry leaders at Biotech 2003, a conference held in late May. “And that can’t continue.”

Price believes the state’s existing biotech companies are going to be in a growth mode for the next decade. “I think there will be a need for 30,000 employees in the next 10 years,” he says.

The employment needs of today’s companies, and the prospects of attracting others, has spurred industry chiefs, the state-funded N.C. Biotechnology Center, economic development leaders and politicians to throw their support behind a $45 million plan to boost the state’s biotech training efforts. Funding is being sought from the Golden LEAF Foundation and elsewhere for a biotech manufacturing training facility that would be built at either N.C. State University’s Centennial Campus or North Carolina Central University in Durham, or a combination of the two; a network of training programs at community colleges; and a graduate-level process development program at NCCU.

Gov. Mike Easley endorsed the project during his luncheon speech. “I don’t know whether we’re going to get it from Golden LEAF, through bonds, through the legislature or whether I’m going to go to the bank and steal it, but I promise you we will find the money in North Carolina,” he said. “There is an enormous need for skilled workers. Nothing else happens without skilled workers.”

North Carolina’s biotech industry is most prominent in the Triangle, but efforts are being made to promote the industry elsewhere in the state. The state-funded Biotechnology Center, which is based in Research Triangle Park, opened a satellite office in the Triad in June and hopes to open several more across the state, according to Leslie Alexandre, the center’s president.   — Kevin Brafford


Wilmington
Third-Generation Architect Steers National Organization
Paul Davis Boney, CEO of Boney Architects, has been elected vice president of the American Institute of Architects (AIA) for 2004. When he takes office in December, he will be the first member from North Carolina to serve on the AIA national executive committee since 1990. Boney has a long history of involvement with AIA and currently serves as director for the AIA South Atlantic Region, encompassing North Carolina, South Carolina and Georgia. In addition to his national and regional involvement, Boney served as president of the N.C. Chapter of the AIA in 1997.

He was elevated to the College of Fellows (COF) in the AIA in 1999, a distinction achieved by just 5 percent of AIA members. Those advanced to fellowship can use “FAIA” after their names.

“As a third generation architect, I was taught the importance of balanced judgment, patience and the ability to listen,” Boney says. “Growing up in a family of architects, every Thanksgiving dinner sounded like an AIA meeting and most of our summer vacations were to attend an AIA convention. I developed a great passion for architecture, the AIA and its future at an early age.”

Boney, who earned a bachelor’s degree in architecture from N.C. State in 1977, most recently has worked the Veterans Park Educational Campus, North Campus Master Plan and McKeithan Building for Cape Fear Community College. He is currently working with UNC Wilmington on plans for a new Center for Marine Sciences facility. -- Kevin Brafford


Lexington
Courthouse Takes Visitors 175 Years Back in Time
As Lexington celebrates its 175th birthday, the Davidson County Historical Museum is offering a couple of exhibits for those who want to go back in time. “An Honor to the County” scrutinizes the history of the old courthouse in downtown Lexington starting with the first year of construction in 1858. The exhibit includes a scale model of the courthouse, which was the talk of the state at the time because of its unique architecture. It features the original design, color and other qualities representative of its location on what was called “Washington Square.” The title of the exhibit was taken from a newspaper article written during the building’s construction.

Catherine M. Hoffmann, curator of the museum, says the exhibit, which opened in May and runs through Aug. 15, has been a big hit. “I have been very pleased with the interest in this exhibit and with the response the public has had to the use of a scale model/diorama,” she says. “They love it. It interprets the building and saves about a million words.”

Hoffmann is grateful of the positive response because it leads into the museum’s major exhibit for the yearlong celebration coming in September titled “Lexington: The County Seat Comes of Age.” A diorama shows Lexington in 1925 with furniture, textile factories and a train running through the model’s landscape. “I think people will like it, and this exhibit, along with the one of the courthouse, will create a better ‘tourist destination’ experience where we can give a historical overview of the county.” Hoffmann says.  — Jim Buice


High Point
Furniture Plant of the Future Already Open, 'Doing It Right'
When searching for a model for the future of furniture makers, Lt. Gov. Beverly Perdue says we should look no further than Brayton International’s new plant in south High Point. “This is as good as it gets in North Carolina,” Perdue told newspaper reporters during her recent tour of the state-of-the-art facility. During a time when many furniture plants are laying off employees or closing their doors, Brayton stands out as an example of a company that’s “doing it right,” according to Perdue.

Brayton, a subsidiary of Michigan-based Steelcase Inc., produces high-end office and contract furniture. The company, which consolidated four older facilities into a 250,000-square-foot building, has about 350 employees.

Brayton, which is celebrating its 30th year in business, prides itself on innovative seating designs and has won a number of awards for its creativity. That extends from its furniture niche to the way its plant is put together. From its two-story glass atrium front, to its non-toxic spray booths, to access to wireless video, voice or data communication for employees, Brayton doesn’t fit the bill of the traditional furniture plant.

“The furniture industry has been characterized as being a bit backward in the way it does business,” says Joe Erba Jr., Brayton president and CEO. “One of our key objectives was to create a space that benefited our employees and that allowed us to ‘walk the walk’ of collaborative living environments and the value of being at home in the office.”

That’s what prompted the visit from Perdue. She wanted to see firsthand the difference between the old furniture manufacturer and the “model for manufacturing in the 21st century” offered by Brayton International.

“This plant shows the potential for industry-specific job training, the potential for using high-tech in a manufacturing environment and the promise that remains for furniture manufacturing in North Carolina,” Perdue says. -- Jim Buice


Charlotte
Remodeled Luxury Suites to Greet Panthers Fans
The Carolina Panthers are in the process of revamping their NFL football team, and Charlotte architect David Wagner is doing likewise to the ritzy club level at Ericsson Stadium. The 72,500-seat facility is only eight years old, but the Panthers want their high-rollers — some 13,500 of whom pay $100 to $300 per ticket or use suites that businesses lease for $59,000 to $120,000 a season — to spend their fall Sunday afternoons lined in luxury.

“Since 1996, 16 or 17 teams have remodeled their stadiums,” says Phil Youtsey, the Panthers’ director of ticket sales and operations. “We were the ultimate football facility for fans when we opened and we want to stay in the top five.”

To do so, the team forked out $5.5 million for the remodeling project, and when fans arrive at the team’s preseason home opener against the Washington Redskins on Aug. 8, they’ll be greeted with themed venues in each of the stadium’s four corners — the work of Wagner, a principal of Wagner Murray Architects.  

Wagner believes fans will embrace the four themed areas, dubbed the Red Zone, the Panthers Den, the Locker Room and the Press Box. “They are a cross between Disney and Vegas,” he says. “They are visually active and interactive for fans and family.”

Each venue will include 30 percent more points of sale. “We’re going to heighten the fan experience,” Wagner says. “We hope they will spend more money, because the environment will be giving entertainment back.”

This isn’t Wagner’s first foray into NFL stadium projects. He led development of fan-friendly facilities at sparkling Heinz Field, the Pittsburgh Steelers’ home since 2001. He’s also the architect of record for the interiors at Raymond James Stadium, the home facility for the defending Super Bowl champion Tampa Bay Buccaneers.

Further, Wagner designed the original interiors for Ericsson Stadium, another reason he’s pleased to be involved in the current project. “It’s a designer’s dream to re-invent a market,” he says. — Ellison Clary



Raleigh
Hurricanes Parent Sees Red in Arena's Operating Margins
Gale Force Sports and Entertainment, the private company that runs the RBC Center, says it lost $13.9 million in three years of playing host to NHL hockey, N.C. State University basketball, concerts and other events, and expected to lose another $2.2 million in the fiscal year that ended June 30. While taxpayers paid the bulk of the arena’s $167 million construction cost, they are not on the hook for the operating losses. Instead, Gale Force Sports and Entertainment, which is run by the Carolina Hurricanes and the hockey team’s parent company, Gale Force Holdings, agreed to absorb the losses as part of its 1999 lease with the arena’s owner, the Centennial Authority, a 19-member board appointed by Raleigh, Wake County and the state.

The company’s losses also compound the financial problems of the Hurricanes, who have operated in the red since moving to North Carolina from Hartford, Conn., in 1997. That’s because the companies are all owned by Compuware software company executive Peter Karmanos and a partner, Thomas Thewes. Michael J. Amendola, Gale Force’s CFO, admits the hockey team is losing $10 million to $15 million annually. “It can’t go on forever,” he told the News & Observer. “No matter how rich an owner you’ve got, this is a lot of money for anybody.”

In an effort to increase revenue, officials are looking at erecting an advertising marquee along Wade Avenue. The authority also has approved plans to install a lighted advertising board rimming the inside of the arena. As part of the naming-rights deal with RBC Centura bank, Gale Force also received $1.1 million for maintenance over five years.

Arena losses are typical, sports business experts say. The Smith Center at the University of North Carolina in Chapel Hill lost $1.1 million last fiscal year, and the Greensboro Coliseum lost about $1.5 million last fiscal year and $2 million the year before. Charlotte’s arena lost about $825,000 last fiscal year. In each case, however, taxpayers pick up the tab.

Gale Force has control of the RBC Center for at least the next two decades in a lease it signed to control scheduling power and create streams of income other than the hockey club’s ticket sales and TV revenue. In exchange, Gale Force pays the Centennial Authority $2.7 million a year in rent. In turn, the authority sends $1.8 million to Raleigh and Wake County as a fee in lieu of property taxes. -- Kevin Brafford


Raleigh
FWV's Lofty Rankings Show NC as a PR Hotbed
A Raleigh public relations firm has achieved what’s believed to be a first in North Carolina. PR Week magazine recently ranked French/West/Vaughan (FWV) as the world’s 27th-largest PR firm and the 15th-largest among agencies that handle client assignments both domestically and abroad.

The dual rankings mark the first time a North Carolina agency has cracked the Top 50 list worldwide based on annual audited revenues. It’s also the first time a Southeast-headquartered agency has ranked among the world’s 20 largest global PR firms.

FWV’s lofty ranking as measured by both revenue and employees comes on the heels of a study weeks earlier by O’Dwyer’s PR Report that ranked FWV as the world’s 13th-largest independently owned PR firm.

“Our growth is a testament to our clients — who give us the latitude to do great work on their behalf — as well as our associates, who are the finest I have had the privilege of being associated with in my 15 years in the public relations business,” says FWV President and CEO Rick French.  — Kathryn Viets




Newland
Hometown Bank Looks East to See the Future
Avery County Bank, one of the state’s most highly regarded community banks, is about to be acquired by Raleigh-based First Citizens Bank. The acquisition is subject to approval of Avery County Bank’s shareholders and federal and state regulatory agencies. Completion of the transaction is expected in the third quarter, and terms of the deal were not released.

If the acquisition is approved, First Citizens will assume Avery County Bank’s $54.4 million in deposits and will operate its branch at 125 Montezuma Street in the small mountain town of Newland. Martha Guy, president of Avery County Bank, will be a consultant for First Citizens and will be asked to serve, along with her bank’s other directors, on a new First Citizens local board of directors.

“The proposed acquisition is a natural extension for our bank and will help strengthen our presence in western North Carolina,” says First Citizens Vice Chair Jim Hyler, who adds that his bank will offer positions to all Avery County Bank employees. “We look forward to extending our superior service and comprehensive personal and business products to new customers in Avery County.”

Avery County Bank was founded in 1913 and has $72 million in assets. Founded in 1898, First Citizens Bank operates 342 branches and has $12.39 billion in assets.

Guy says the decision to affiliate with First Citizens was borne on strategy. “We share a commitment with First Citizens to provide high-quality service to the people of this community,” she says. “Our customers will benefit from First Citizens’ stability, long-term perspective and many convenient financial services delivery channels.”  — Kevin Brafford




Hickory
College's New President Sees Growth Ahead
The new president of Lenoir-Rhyne College has taken the helm of the 112-year-old liberal arts college in Hickory with a vision for the future that he says will build the school into a nationally recognized institution that will continue to feed leaders into the region and state. “Our vision is to be an institution that will attract the best and brightest of students from around the country to Hickory and to North Carolina,” says Dr. Wayne B. Powell. “We want these students to remain after they graduate and participate in the growth of the Hickory region.”

Within the next five years, Powell says the college plans to grow from an enrollment of 1,500 to 1,700 students, and within the next 10 to 15 years, Lenoir-Rhyne’s enrollment should climb to 2,500 students.

Lenoir-Rhyne remains committed to the liberal arts and comprehensive education as the foundation of its programs, and it will continue to prepare students for professional careers, but it also “will be larger and offer new programs,” Powell said.

The future includes at least one new residence hall, a theater adjacent to the auditorium that will serve the school and the community, a state-of-the-art science facility, and 10 academic schools focusing on interdisciplinary approaches to excellence in education, says the new president. The 10 academic schools were recently revamped under Powell’s leadership.

Powell has been at Lenoir-Rhyne since 2000 when he became vice president and dean for academic affairs. Prior to coming to Hickory, he served as dean and associate dean of the Graduate College of Oklahoma State University where he oversaw the university’s 4,600-student graduate program. He also taught mathematics at Oklahoma State.

He holds a Ph.D. in mathematics from Tulane University, a master’s degree from Texas A&M and a bachelor’s degree from Texas Lutheran College. -- Charlene H. Nelson

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