  |
|
The Voice of Business,
Industry & the Professions Since 1942
North Carolina's largest
business group proudly serves as the state chamber of commerce
|
|
|
|
|
|
January 2005
Regional Business Reports
Charlotte
Uptown Living Soars -- 21 Stories Up
Uptown Charlotte’s towering bank buildings and daily influx of executives in
expensive suits fits its identity as a business center, but several new
residential projects signal the increasing popularity of the center city as
a place to live.
Since April eight new residential projects have been announced, including
two residential towers that will soar 16 and 21 stories above the sidewalks.
Demand for uptown living is unprecedented, says Sandy Kindbom, broker in
charge of Allen Tate Co.’s uptown Charlotte office, where the inventory of
uptown condo listings dropped to a mere 33 units earlier this year.
Two significant projects that will grow the uptown residential population —
which now exceeds 7,000 — are Courtside and The Park Condominiums.
Courtside is a 16-story, 104-unit residential tower being developed by
Boulevard Centro just a block away from the arena under construction for the
NBA Charlotte Bobcats. The project sold out in two weeks.
A project called The Park Condominiums was reintroduced this summer after
being put on hold during slower economic times when financing was difficult
to arrange. The 21-story building with 107 units also near the arena
received commitments from 80 buyers within two weeks after it was announced.
Both projects are scheduled to be finished in fall of 2005.
Charlotte’s uptown housing boom started in the mid-1990s with the
redevelopment of the former Ivey’s department store building followed by
another luxury condo complex, 400 N. Church Street. In the late 1990s Bank
of America created a live-work campus called Gateway Village, which spurred
residential development within the I-277 loop. They ranged from affordable
units in the upper $100,000 to million-dollar units with views of the
skyline and the Bank of America stadium where the Carolina Panthers play.
The opening of two uptown grocery stores over the past five years as well as
a multitude of new restaurants, galleries and parks, made uptown even more
attractive to potential residents.
Kindbom says those buying in uptown Charlotte are lured by the lifestyle,
which can mean walking to work or the grocery store, dining out and enjoying
the entertainment and cultural attractions.
About half of her buyers are young professionals who often enter the market
purchasing their first home at prices nearing $300,000.
“With little supply they are often willing to make concessions on their
house before they make concessions on their lifestyle,” she says.
Empty nesters make up the other half of the buying market, and they tend to
be more discriminating buyers, often purchasing luxury condos selling for
more than $1 million.
“As a city Charlotte is a teenager,” says Kindbom. “It has a ton of growth
yet to come.” — Laura Williams-Tracy
Triad
Generous Local Incentives Complicate Dell's Decision
If Dell Inc. hasn’t announced the exact location of its $100 million Triad
computer manufacturing plant by the time you read this, it won’t be due to a
lack of interest by local governments in the region.
Everyone knew Dell wanted to be somewhere in the Triad when the Texas
computer maker in November said it was accepting the state’s $242.5 million
incentive package to come to North Carolina. The only question was where:
Winston-Salem and the Forsyth County area or Greensboro and Guilford County.
High Point and Davidson County were the dark horse candidates.
Greensboro and Guil-ford County assembled a local incentives package worth
$12.4 million. Winston-Salem and Forsyth countered with a package valued at
$37 million, including a prime tract in the planned Alliance Science and
Technology Park between I-40 and US 311 east of the city. When concerns were
raised about adequate road access to that site, off two-lane Union Cross
Road, the state stepped in with a $5 million offer to widen the road.
The apparent front-running location in Guilford County is a large tract
owned by and adjacent to Piedmont-Triad International Airport. But someone –
private business interests or perhaps the county – would have to buy the
land for Dell because by law PTI can’t give it away.
The computer maker said it definitely would locate the 400,000-square-foot
plant somewhere in the Triad. Total employment at the facility, including
suppliers, is estimated to be about 2,000. The project is expected to have a
$24.5 billion impact on the state economy over 20 years and bring in an
estimated $743 million in net revenue.
The General Assembly convened a one-day special session on Nov. 4 to approve
the economic incentive package for Dell. Legislators approved the package by
a vote of 92-18 in the House and 33-15 in the Senate. Ninety-five percent of
the Dell incentives will be in rebates on corporate income taxes and
franchise and sales taxes. For each year Dell meets required performance
targets, the state will refund 75 percent of the state personal income
withholding taxes paid by employees. — Steve Tuttle
Asheville
Mission Hospital Travels to Michigan for New CEO
Joseph F. Damore assumed the position of CEO of Mission Health and Mission
Hospitals in Asheville on Dec. 1. Formerly president and CEO of Sparrow
Hospital and Health System in Lansing, Mich., Damore takes over for the
retiring Bob Burgin. Burgin served over 23 years at Mission’s helm and is
widely credited with growing the once-modest hospital into a regional health
system that ranks as North Carolina’s largest private employer west of
Hickory.
“We did a year-long search in order to find Joe,” says Stephen Miller,
outgoing chairman of Mission’s board and head of its CEO search efforts.
About 200 applicants vied for the position, according to Miller, most of
whom were well-qualified. “We spent a great deal of time finding someone
with both the right technical skills and a leadership style that was
compatible with Mission’s culture. Joe fits that profile perfectly,” says
Miller, an executive at The Biltmore Company and current NCCBI first vice
chair.
Damore, 51, comes to Mission after 14 years as head of Sparrow, a 687-bed
teaching hospital affiliated with Michigan State University. Under his
leadership, Sparrow blossomed from a community hospital into one of
Michigan’s largest health care providers. “He has exactly the right approach
to build on Bob Burgin’s leadership,” Miller says. Burgin will remain in
Mission’s orbit for another year, keeping the transition smooth and helping
with fund raising and government relations. — Lawrence Bivins
Hickory
Endowment Allows College to Grow Conservation Cause
Nationally recognized conservationist Thomas W. Reese has given Lenoir-Rhyne
College a $3 million endowment to establish the Reese Institute for the
Conservation of Natural Resources.
Reese, owner of Hickory Printing Group and a 1948 graduate of the college,
has received numerous national and state awards recognizing his support for
higher education and conservation causes, including the state’s highest
award, the Order of the Long Leaf Pine in 1996.
The goal of the Reese Institute is to form a nationally recognized
conservation program that works closely with regional government, industry
and community groups to clarify environmental problems and identify
practical solutions. To achieve that goal, the institute will focus on
developing responsible leaders who creatively solve problems, develop
sustainable resources, and practice responsible management and use of those
natural resources.
Sen.-elect Richard Burr says that “Western North Carolina will benefit from
the new emphasis placed on regional environmental issues by students,
community and business leaders. Our children and grandchildren will realize
the dividends from the investment made by the Reese Institute and Lenoir-Rhyne.”
The institute will become a flagship program for Lenoir-Rhyne, according to
President Wayne B. Powell, and will “further serve to integrate the
college’s excellent academic programs with the economic development of the
region.”
Search for a director has begun and the institute hopes to be operational by
fall 2005. — Allan Maurer
Statewide
Validation Academy Advances State's Biomanufacturing Goals
North Carolina brings a tasty new entree to the table for enticing biomanufacturing plants to locate here this spring. In April, the N.C
Community College BioNetwork launches the world’s first and only
biomanufacturing validation academy.
The BioNetwork Validation Academy will train workers in the key skills
needed to commission new pharmaceutical and biomanufacturing plants and
improve Good Manufacturing Practices at existing plants. Government GMP
regulations run to nearly 150 pages.
The International Society of Pharmaceutical Engineers (ISPE), a
23,000-member industry organization, will provide curriculum materials for
the academy. The N.C. Department of Commerce is supplying $400,000 in
funding. BioNetwork provides classrooms, instruction, and laboratory
facilities.
“Validation costs run between 5 to 9 percent of costs of a typical new
facility, and a new plant costs $100 million or more,” ISPE President Jim
Roth told the BioNetwork Advisory Board this fall. Access to workers trained
in validation can save companies millions of dollars in startup costs,
bringing plans online sooner and helping them reach profitability quicker.
The potential savings give the state a significant bargaining chip.
“The bottom line is that this academy could create thousands of jobs for the
state,” says Susan Seymour, BioNetwork director. She also points out that
partnering with ISPE will give the academy national and international
recognition. The academy will also serve as a place for ISPE to field test
new and modified curricula intended to keep pace with the regulatory
environment. -- Allan Maurer
Metrolina
Counties Reach Across River That Long Divided Them
The border between Mecklenburg and Gaston counties is the Catawba River,
which separates them more than just geographically. While Mecklenburg and
the rest of the region have grown at 3.5 percent a year, Gaston’s growth has
been flat.
“There’s been a historical mindset that you stay on your side of the river
and we’ll stay on our side,” says Bob Morgan, president of the Gaston
Chamber of Commerce for the last two years. He spent the previous 11 years
on the other side of the river with the Charlotte Chamber.
Lately the two counties seem to be getting friendlier and finding ways to
work together. “There’s an explicit acknowledgement now that we need to be
closer to the region,” Morgan says.
The most vivid example is the U.S. Whitewater Park. Four local Gaston
governments – Mount Holly, Belmont, Gastonia and Gaston County – have joined
with Charlotte and Mecklenburg County to invest in the project being built
on the Mecklenburg side of the river.
The whitewater park includes man-made rapids on the Catawba River to serve
as a training ground and exhibition space for Olympic kayaking competition.
It also will be open to the public for recreation.
“I cannot find another example of tax dollars going across county lines for
an economic development project. It’s unprecedented,” says Morgan.
The counties also are reaching across the river in other ways. Gaston is
pushing the Garden Parkway, a toll road that would provide a new backdoor to
the Charlotte-Douglas International Airport from Gaston. When it opens,
perhaps in 10 years, built, the parkway would have a major impact on
development patterns in the region.
Already having an impact is the western leg of Charlotte’s I-485 outer loop,
which opened in October. The highway makes Gaston, especially its eastern
towns of Belmont and Mount Holly, attractive to people working in
Mecklenburg County who find the smaller towns across the river appealing.
Morgan expects that getting closer to Mecklenburg and the rest of the
growing region could mean strong job growth for Gaston, which has lost
17,000 manufacturing jobs in the last decade. Already, major community
players of Belmont Abbey College, Pharr Yarns, R.L. Stowe Mills and Parkdale
Mills are working to develop 1,000 acres of land on the county’s eastern
side for retail, a hotel, medical and other offices.
“The river has been a geographic barrier and a psychological barrier,” says
Morgan. “But it’s being discovered that the quality of life is just as good
on this side.” — Laura Williams-Tracy
Wake County
In a First, County Offers Incentives to Lure Employees
For the first time in its history, Wake County agreed to pay a company cash
as a corporate incentive —$2.5 million to lure Credit Suisse First Boston to
Research Triangle Park. But last month’s action probably won’t be the last
time, says Ken Atkins, executive director of Wake County Economic
Development.
“We’re working with David Cook, county manager, to formulate the guidelines
of a county incentive policy for companies that plan to invest at least $100
million,” Akins says. “They will likely be close to the provisions of the
Credit Suisse deal.”
CSFB plans to build a $100 million facility employing more than 400 people
at an average salary of $72,000 year at a site near Cisco Systems in
Research Triangle Park.
“It’s a good match for unemployed workers in the Triangle who have advanced
degrees and were making that kind of income but lost jobs during the
downturn,” Atkins says.
Wake will pay the cash incentive over an eight-year period as long as CSFB
meets investment and job creation criteria, Atkins says. The county anted up
the cash to meet local matching funds required by the Governor’s One North
Carolina Fund, which may sweeten the pot with up to an additional $3
million. The county also will extend water and sewer lines to the site,
which will cost an estimated $600,000 on top of the cash.
“This is an interesting deal in a lot of ways,” Atkins notes. “Not only is
the county paying incentives, which its never done before, but Wake Economic
Development and the Durham Chamber worked together on the proposal for this
project. Even when we were discussing the project with consultants, they
commented on how the communities cooperated. It was very impressive to the
company.”
Even though the project did not land in Durham, it benefits the Triangle as
a whole, says Atkins. “They’ll draw workers from the entire area. People
will live throughout the community and buy goods and products throughout the
region.”
The small business community also is likely to benefit “as the company grows
and builds and develops it will provide outsourcing opportunities for such
things as janitorial and security services,” he says. “It’s a huge win for
the whole Triangle.” — Allan Maurer
Eastern N.C.
Delays in Improving Highway 70 Vex Officials
Highway 70 is the single most important project in Eastern North Carolina,”
says David Inscoe, executive director of the Carteret County Economic
Development Council. “The high traffic volume and 67 stop lights make it one
of the major deterrents to economic development from Wayne County to
Carteret.”
Delays of five major projects in the N.C. Department of Transportation’s
Transportation Improvement Program (TIP), primarily due to environmental
issues, worry economic development officials along the corridor. Inscoe
notes that delays stalled both the Clayton and Havelock Bypass projects,
which he calls the “most despised parts” of the trip to and from Raleigh.
Havelock, for instance, has 13 stoplights that slow traffic.
Inscoe says a newly formed group of representatives from five counties on
the highway’s corridor “hopes to influence decisions made about it.” Founded
at the instigation of Wayne County’s Board of Commissioners, the group is
planning its third meeting. The idea, Inscoe says, “that you have to keep
your eye on the ball. We want them to know we’re paying attention all the
time. It’s human nature to respond to that squeaking wheel.”
Quoting a trucking logistics expert, Inscoe says that every stop light on a
route adds one and one-half minutes to the trip. “So 67 stop lights adds 95
minutes,” he notes. The result: one company recently considering locating a
manufacturing facility at Morehead City Port that would have created 200
jobs finally dropped consideration of the site due to transportation issues.
“They would have a significant number of trucks going out per day and had to
find a place where they could get to highways better,” Inscoe says. “Every
time we turn around, it’s an issue.”
In addition to Clayton and Havelock, the new group wants attention focused
on the Goldsboro, Kinston, and Beaufort Bypass projects. —Allan Maurer
Boone
Camp Transforms Teens Into Budding Entrepreneurs
You send your kids off in the summer to camps for soccer, Scouts and other
programs. Did you know there’s also a summer camp that introduces high
school students to the basic principles of business and entrepreneurship?
The Martha Guy Summer Institute for Future Business Leaders at Appalachian
State University in Boone now is accepting applications for its second
season. Last year’s inaugural program was a surprising success and boasted
an impressive program.
Those 22 students spent two weeks on Appalachian’s campus studying basic
business principles. They created their own business idea, learned how to
develop a business plan, and developed professional and executive skills
through etiquette, resume writing and interviewing workshops. They also
attended cultural events and enjoyed other summer and outdoor activities
available in the High Country.
Over the next two weeks the students traveled to New York City and
Washington, D.C. They visited the New York Stock Exchange, the U.S.
Department of Commerce, the World Trade Centers Association, Bank of
America’s trading floor, and they met with the policy director for then-Rep.
Richard Burr.
The MGSI is named for Martha Guy, the former president of Avery County Bank
who is a donor and friend of the Walker College of Business. The program is
for high school juniors and is currently seeking applicants for the 2005
program to be held July 10-30. The cost is $500 for the entire program and
scholarships are available.
More information and applications are available online at
www.business.appstate.edu, or by contacting Deanne Smith at 1-877-APP-MGSI
(277-6474) or mgsi@appstate.edu. — Steve Tuttle
Anson, Richmond
Electric Co-ops Plan Two New Generating Plants
To meet peak demands of its 2.5 million customers, the N.C. Electric
Membership Corp. (NCEMC) plans to build new 300-megawatt generation
facilities in Anson and Richmond counties.
Additionally, under a long-term deal, Progress Energy would supply the
co-ops with an extra 300-megawatts of generation during peak load times,
says Rick Martinez, manager of corporate communications for the NCEMC.
“We will buy more from them in the first couple of years. It’s a bridge. The
two plants will probably be online in 2007,” Martinez says. He adds that the
co-ops will pay for the plants through a loan from the Rural Utilities
Service, which is part of the U.S. Department of Agriculture. Twenty-two of
the state’s 26 co-ops want in on the arrangement.
During the past 14 years, total energy usage by the state’s co-ops grew
about 4.5 percent per year. During the next 14 years, the annual growth rate
is expected to be 2.3 percent. At the same time, long-term power purchase
contracts with various wholesale power suppliers are expiring. From the end
of 2004 through 2013, 1,261 megawatts of contract power will expire from the
NCEMC portfolio.
Each of the new plants should operate from 700 to 1,200 hours a year, or
about 10 percent of the time. The Anson County location is a 160-acre parcel
southwest of Blewett Falls Lake and south of Clark Mountain. The Richmond
County site is on a 260-acre parcel adjacent to the Progress Energy
generation facility near Hamlet, just south of U.S. 74.
Each plant will cost about $150 million. The NCEMC selected the large sites
to provide adequate space for aesthetic and environmental buffers.
— Heidi Russell Rafferty
|
|
|
|
|
|