Regional
Business Reports
In the
news this month
Gaston County: Civic
Leaders See Tolls on the Road to the Future
Charlotte: Deadline
Looms for a Pact on New Arena for the Hornets
High Point: City
Hopes its Showroom Space Will Attract More Conventions
Hickory: Support
for Explosive Rural Growth Flors from Some Unusual Sources
Wilmington: Entire
Region Gets in the Swim to Land a Major Boat Builder
Greensboro: Downtown
Stars in a new Television Commercial
Charlotte: First
Union Bridges the Digital Divide
Civic
Leaders See Tolls on the Road to the Future
Gaston County known for its
fish camps and textile mills could become known
for the state's only toll road. While the often-cursed
traffic bottlenecks and exact change headaches of our
northern neighbors' toll roads weren't Gaston County's
first choice, community leaders say a southern bypass and
an additional bridge crossing the Catawba River into
Mecklenburg County are needed quicker than state
transportation officials expect to have money to
construct.
So the
Gaston Chamber of Commerce, which believes such a bypass
would open land to development and relieve congestion on
I-85, began exploring other means of financing the road.
In July the General Assembly passed legislation sponsored
by Gaston and Mecklenburg officials that will allow one
private toll-road project somewhere in the state. The
legislation doesn't specify that Gaston gets to be the
state's toll-road guinea pig, so Gaston officials are now
exploring how to put together the financing to get the
state's approval. The choice is between allowing a
private company to finance the project and collect all
revenues from tolls or a public-private venture, similar
to one under way in Greenville, S.C.
We want a road
quickly, but at the same time get the lowest possible
cost, says Bob Spencer, chairman of the chamber's
transportation committee. Gaston is a good test site for
the state's first toll road, Spencer says, because
drivers will have the option of paying to use the toll
road or ride free on I-85 or U.S. 74, which currently
offer the only two major bridges across the river in the
county. Toll road supporters think the free highways will
be crowded enough to entice a good portion of the 20,000
Gaston residents that now commute into Mecklenburg County
to pay for a faster ride.
Supporters also point to
the growth of Charlotte-Douglas International Airport,
which soon will be opening new intermodal freight yards
that will increase truck traffic around the airport.
Also, Stowe Botanical Gardens, located in the lower
Belmont peninsula, is undergoing extensive growth and is
expected to attract thousands of visitors a year.
Preliminary plans call for a 26-mile, $400 million bypass
that would stretch from west Gastonia to the southeast
and over the Catawba River near the Duke Energy Allen
Steam Plant south of Belmont.
Bob Cook, senior
transportation planner for the Gaston Metropolitan
Planning Organization, says current travel demand models
have I-85 and U.S. 74 at or over capacity within 20
years. There's been a greater need in other places
in the country for toll roads because of the rapid growth
they experienced. Our growth is more recent, Cook
says. Laura Williams-Tracy
Deadline
Looms for a Pact on New Arena for the Hornets
After three years of flirting with
the idea of a new uptown arena for the NBA's Charlotte
Hornets, team and city officials are expected to hammer
out a deal by mid-December. But a pact between the city
and the Hornets is just the first step in building an
estimated $250 million arena. The Hornets also hope to
get financial backing from the county, the state and the
Charlotte business community.
Both sides are working
toward a Dec. 31 deadline. Without a decision by that
time, the Hornets can break their lease on the city-owned
Charlotte Coliseum, where the Hornets currently play,
without a financial penalty. Hornets officials have said
without a new arena they will consider moving the team to
another city.
We certainly think
it's important to keep the Hornets in Charlotte,
says Curt Walton, Charlotte budget director and a member
of the city's negotiating team. It follows our
economic strategy to retain the businesses we've got, and
the Hornets certainly are one of our most prominent
businesses.
The negotiations come at a
difficult time for the Hornets. Fan apathy is high after
a series of players and owner George Shinn became
entangled in run-ins with law enforcement. Game
attendance is at an all-time low. The 12-year-old
coliseum has no club seats and only 12 luxury suites. The
Hornets say they need these higher-priced seats and
luxury boxes to make the franchise profitable. The
Hornets want to leave the 23,799-seat arena and move to a
proposed 19,500-seat arena.
Ray Wooldridge, an Atlanta
businessman who purchased part ownership of the team last
year and who now heads up the Hornet's negotiating team,
estimates the Hornets will lose $20 million over the next
year due to increased player salaries with no rise in
revenue. Wooldridge has said in the past that the Hornets
are losing $1 million a month playing in the current
arena. Officials have set their sights for a new arena on
a 10-acre tract of land in downtown Charlotte near
Ericsson Stadium, where the Carolina Panthers play.
Three financing plans
proposed by Wooldridge were snubbed because each presumed
that most of the arena's cost would be paid by taxpayers.
Most city council members believe the Hornets should pay
at least half. Charlotte will likely have to raise at
least $80 million toward an uptown building. Laura
Williams-Tracy
City
Hopes its Showroom Space Will Attract More Conventions
Downtown High Point puzzles
first-time business visitors. What seem to be retail
storefronts often have signs hanging on the door:
Not open to the public. What visitors have to
be reminded of is that the buildings they are viewing
collectively make up the largest furniture showroom in
the world. For two weeks in the spring and again in the
fall, downtown High Point is filled with thousands of
furniture buyers attending the International Home
Furnishings Market who crisscross the streets to walk
into those not open to the public showrooms
to view the latest lines.
Starting in January,
downtown High Point hopes to expand its image from that
of a giant furniture trade show space to just plain trade
show space. Showplace!, a 450,000 square-foot building
that opened last month, has put aside about 285,000
square feet as temporary space. Two blocks away, Suites
at Market Square has set aside 115,000 square feet as
temporary space. Counting 60,000 square feet of meeting
space at the Radisson Hotel, downtown High Point now has
460,000 square feet of showroom and meeting space to
pitch to trade show managers.
Officials at the High
Point Convention and Visitors Bureau have been holding
off on going after too many large shows until Showplace!
was finished. You can't pitch a building that is
under construction. Meeting planners want to see
it, says Ron Stephens, vice president of sales and
marketing for the Bureau.
Another key to developing
the trade show business, say Stephens and CVB President
Charlotte Young, is attracting another downtown hotel to
increase the number of rooms within walking distance of
the showroom space. An older Ramada was torn down last
year and more permanent showroom space is going up in its
place. The only rooms downtown today are the 252 rooms of
the Radisson. Counting those near the Piedmont Triad
International Airport, High Point has 900 hotel rooms.
I would like to end up with about 1,500 to 2,000
rooms, says Young. That would make the
selling of the area a little easier. Right now we are
about 500 away from that.
Hotel developers have
heard about the new showroom space and several are now
evaluating High Point. The prime space on Main Street is
also prime space for furniture showrooms, so developers
are studying if they can attract guest attention one or
two blocks off Main. Stephens and Young are confident
that a major hotel will be opening in downtown High Point
within two years. If it succeeds, more hotels may follow
and the city could become a year-round trade show
destination. Clint Johnson
Support
for Explosive Rural Growth Flows from Some Unusual
Sources
A cooperative effort by Catawba
County and the cities of Conover and Hickory to provide
water to southeastern Catawba County is being lauded by
the state as exemplary. Catawba County recently reached
an agreement with Hickory through which the city sells
water to county residents about 32 miles away in the
southeastern part of Catawba County.
Because there aren't any
city water lines that reach that area of the county, the
county had to determine how to get the water to the area
that is bordered by Lincoln and Iredell counties and Lake
Norman. That is where Conover came in. The smaller city,
which borders Hickory's southeastern city limits and has
purchased water from Hickory for years, agreed to let the
water flow through its lines, thus saving the county from
having to build more lines. The county will have to build
a connector to join it to its existing lines and will add
more lines as new homes are built, according to County
Manager Tom Lundy.
Southeastern Catawba
County, which includes the popular Lake Norman area and
the communities of Sherills Ford and Terrell, has a
population of about 18,000 and has received requests from
developers to build about 1,000 new homes in three
subdivisions. Existing homes are on well water. County
commissioners began addressing the need to get public
water to the area about four years ago when it set a goal
of having water piped to all county schools. The county
also wanted to have public water piped to CommScope
Corp., which has a large plant in that part of the
county.
State Secretary of
Environment and Natural Resources Bill Holman commends
the cooperative efforts. What is unusual is that
the county and two towns have decided to do this on their
own. Most of the time you don't see regional cooperation
begin until the state tells them they have to do
it, he says. It takes good local leadership
for governments to realize that it is in their best
interests to work together to provide services.
The county has contracted
with Hickory to provide up to 300,000 gallons a day to
the area, according to Hickory Public Service Director
Chuck Hansen. The city will provide the water, maintain
the lines and do the billing. The county will build any
new water lines that are needed. Hickory and the county
will split the revenue, and Conover will receive a fee
for the use of its lines.
When Hickory built its
state-of-the-art water treatment center about 10 years
ago, it planned for the facility to be a regional water
supplier, according to City Manager Gary McGee. It has a
32 million gallon-a-day capacity, and the average usage
is 13 million, according to Hansen. Hickory also sells
water to parts of Alexander, Burke and Caldwell counties.
Charlene H. Nelson
Entire
Region Gets in the Swim
to
Land a Major Boat Builder
In economics, they say a rising tide
lifts all boats. That is certainly the case, literally
and metaphorically, around Wilmington lately. KCS
International, the Wisconsin-based parent of Cruisers
Yachts, Rampage Sport Fishing Yachts and Shamrock Sport
Fishing Boats, has announced it will invest $20 million
in a new 258,000-square-foot manufacturing facility in
Navassa, a tiny Brunswick County town on the banks of the
Cape Fear River.
The 60-acre spot will
initially turn out 30-foot and 38-foot Rampage models.
Eventually, its 44-foot and 50-foot lines will be folded
into the site, which will employ up to 700 as it ramps up
operations in the coming five years. These are all
jobs that pay 10 percent or more above the county's
average wage, says Steve Johnson, director of the
Brunswick County Economic Development Commission.
Boat building is nothing
new in North Carolina. Coastal North Carolina has seen
its number of boat manufacturers and boat building jobs
surge since the mid-1990s. But the KCS International deal
represents a large, nationally recognized name in the
industry. These are high-end boats, says Mike
Bradley, director of the Marine Trades Program at UNC
Wilmington, which helped place the firm at the site.
We're really lucky.
At full capacity, the site
is expected to generate $13 million in annual payroll.
But Bradley anticipates a wider economic impact as KCS's
suppliers consider setting up outposts nearby.
Without question, any time you have a company that
size, there'll be contractors moving in to fill
needs, he says.
Aside from being a big win
for Brunswick County, the KCS decision was a textbook
case of regional cooperation and collaboration. Company
officials made an initial site-selection trip to
neighboring Wilmington five years ago to look at the site
of the defunct Carver Boats. When that site was sold to
another firm, officials of Wilmington Industrial
Development (WID), which directs economic development in
New Hanover and Pender counties, kept up the pressure on
KCS to consider other locations in the region. The
company was sold on the Navassa property because its size
will accommodate expansion as needs grow and because its
deep-water access will support deliveries by water in
addition to year-round testing. Whatever helps
Brunswick County also helps New Hanover and Pender
counties, explains Rick Biberstein, WID's chairman.
Every indication is that it's going to be a big
boost for the entire regional economy.
WID joined with Brunswick
County officials and a host of other players to place the
plant in the region. The N.C. Department of Commerce,
Brunswick Community College, North Carolina's Southeast
and CP&L each stepped forward to ensure KCS got what
it needed in terms of infrastructure, customized
workforce training and utilities.
In announcing the
decision, KCS International President Jim Viestenz
acknowledged the closeness of Brunswick County's Johnson
and Scott Satterfield, WID's executive director.
The spirit of teamwork and cooperation that existed
between these two to help us locate the right piece of
property was unmatched. Lawrence Bivins
Downtown
Greensboro Stars
in
a New Television Commercial
Downtown Greensboro is the place to
be for diners and shoppers, at least according to a
30-second TV commercial that's airing on the city's CBS
affiliate. It is designed to show the energy that
is happening downtown right now and promote the diversity
of the unique shopping, eating and entertainment venues
we have, says Ray Gibbs, president of Downtown
Greensboro Inc.
Gibbs may be thinking
about lengthening the commercial and extending the
message that downtown is where renters, homeowners, and
businesses also want to be. At present Gibbs estimates
there are about 125 residential units downtown. Over the
next 18 months he expects another 250 to be built. The
mix will vary from an expansion of an existing downtown
apartment complex to the renovation of several
dilapidated Victorian homes to the construction of new
townhouses that will be zoned to allow owners to operate
a professional business on the first floor and live on
the second floor.
Next month the Kress
Building, which has been abandoned for 20 years
though it featured such style touches as a terrazzo floor
and stained glass windows will reopen as home to
an architectural firm and an advertising agency. The
fourth floor will feature a roof top terrace suitable for
holding receptions and meetings. Another architectural
firm has moved into a renovated building that was once so
filled with junked washing machines that the prospective
owners could barely squeeze around to inspect its
structural integrity. And the SouthTrust Bank building,
which opened this year, is about 80 percent occupied.
Downtown figures to get a
boost at night by the middle of next year. Triad Stage, a
300-seat theater that will employ professional actors,
will open in the remodeled Montgomery Ward Building.
Triad Stage will join the Carolina Theater and the Broach
Theater in providing entertainment virtually every night
of the week.
Where people go,
restaurants are sure to follow. There are 25 at present,
including 12 that stay open in the evening. Another four
will open over the next several months. Restaurants
seem to feed off of each other. Once one is successful,
others seem to follow, says Gibbs. People
tend to think of downtown as offices that empty out after
work, but that no longer is the case.
Still more developers are
joining in the drive to bring people and business back
downtown. According to Gibbs, 32 downtown buildings have
sold during the past year and two more are under
contract. Downtown used to be just about banks and
brokerages, but now we are pulling in the high-tech web
design companies and architecture firms, Gibbs
says. This commercial development will help drive
the residential market. Clint Johnson
First
Union Bridges the Digital Divide
First Union Corp. has launched an
initiative to help bridge the digital divide and provide
training and access to computer technology for thousands
of people. The eCommunitiesFirst program addresses the
national trend that individuals who lack access to
computers also fail to get the skills they need to
compete in today's technology-driven marketplace. A
recent National Public Radio study confirmed that
lower-income Americans are less than half as likely as
those with higher incomes to have an Internet connection
at home.
People without access and
education are at a disadvantage in pursuing educational
opportunities, jobs and financial goals. These
individuals that we hope to reach in the community will
become employees of some company, will become homeowners
and will become more productive employees because of this
training, says Lenny Springs, senior vice president
for community development for First Union.
Springs says First Union
recognized that other organizations are working to
provide more access to technology to disadvantaged
groups, but no other organization was also providing the
free training, which is key in closing the gap between
people with technology resources and those without.
Almost 1,000 students are expected to be trained in
eCommunitiesFirst by year's end.
The eCommunitiesFirst
program is an alliance between First Union and 15 other
community organizations in the Charlotte area, including
the city, Charlotte Mecklenburg Schools, the Housing
Authority and a number of churches and community
organizations. It grew out of First Union's Community
Development Advisory Council, which identified the lack
of access to computer technology by lower-income
individuals, minorities, youth and senior citizens as a
growing concern.
The program kicked off in
August at four learning centers around Charlotte. More
than 100 First Union employee volunteers and community
volunteers staff the centers during and after business
hours. The training curriculum includes an introduction
to computers, a class on Internet basics and a basic
money management class.
A side benefit to the
program is that it will equip these same people to
participate in the growing trend of online banking
services. First Union has made Internet banking a key
portion of its business model for the future. We
want all of our customers to be able to take advantage of
online banking services, says Mary Eshet, a
spokesman for First Union. Online resources are so
key to getting an education, finding a job, and managing
money all of the transactions of life. This whole
group of people shouldn't be left behind.
Part of the
eCommunitiesFirst program includes an outreach to
Charlotte-Mecklenburg Schools to provide greater computer
access for students and impact student achievement. First
Union is donating almost 100 computers to the school
system. First Union plans to roll out eCommunitiesFirst
in other cities in future months, including Atlanta,
Philadelphia, Washington, D.C., Miami and Greenville,
S.C. Laura Williams-Tracy
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