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03-22-2022 Agenda Packet EDC4:00 PM 4:01 PM 4:03 PM 3. Consent Agenda a. January 25, 2022 EDC and PCBIC Planning Session Minutes b. February 22, 2022 Meeting Minutes Motion 4:05 PM 4. Ethics Review 4:35 PM 5. Business Survey Update 4:40 PM 6. Director's Report 4:45 PM Led By Chairman Allen 4:50 PM 4:55 PM 4:55 PM Motion: 7. Member and Ex Officio Comments Ms. Sherry Wilborn, ED Director Request Motion to Approve Mr. G. Phillip Allen, Chairman 1. Welcome 2. Invocation Mr. G. Phillip Allen, Chairman Mr. Dale Reynolds, Vice Chairman Mr. Ellis Hankins, Person County Attorney Mr. Michael Thibault, ED Asst. Director Person County Economic Development Commission Meeting Location: Person County Economic Development Board Room Tuesday, March 22, 2022 4:00 p.m. Agenda 303 S. Morgan St. Request Motion to Adjourn Mr. G. Phillip Allen, Chairman Mr. G. Phillip Allen, Chairman 10. Adjournment Mr. G. Phillip Allen, Chairman 8. Chairman's Report 9. Next Meeting -April 26, 2022 4:00 p.m. Person County EDC Board Room 303 S. Morgan St. Roxboro, NC EDC and PCBIC Planning Session Minutes for January 25, 2022 Minutes of the PCEDC and PCBIC Planning Session Kirby Cultural Arts Complex 213 North Main St., Roxboro, NC 27573 January 25, 2022 Voting Board Members Present: Mr. Phillip Allen-Chairman Mr. Kenneth Perry The Honorable Merilyn Newell-Secretary Mr. Donald Long Mr. Dale Reynolds-Vice Chairman The Honorable Gordon Powell Mr. Danny Talbert Mr. Ernie Wood Ex Officios Present: Mr. Brooks Lockhart, City Manager Ms. Heidi York, County Manager Dr. Claudia Berryhill, Agricultural Representative Dr. Rodney Peterson, PCS Superintendent Dr. Pamela Senegal, PCC Representative ED Staff Present: Others Present: Ms. Sherry Wilborn, ED Director Mr. George Willoughby Ms. Brandy Lynch, ED Senior Mr. Tommy Warren, City of Roxboro Administrative Support Mr. Andy Oakley, City of Roxboro (Minutes) The Honorable PJ Gentry Mr. Ted Abernathy, Economic Leadership Mr. John Nelms, Duke Energy Mr. Blake Hall, Timmons Group Mr. Nate Groover, Timmons Group Mr. Joe Hines, Timmons Group Ms. Sallie Vaughn, Person County GIS Welcome and Introductions: 1. At 12: 00 pm, Chairman Allen called the meeting to order. Sherry Wilborn begins with introductions. Sherry Wilborn’s presentation will be included in the minutes. 1 of 77 EDC and PCBIC Planning Session Minutes for January 25, 2022 2019 Adopted Strategic Plan Review 2. Ms. Wilborn reviews the highlights of the 2018 SWOT Analysis and 2019 Strategic Plan., explaining that only after seven months since the inception of the Strategic Plan the Covid Pandemic hit. Followed by Person County’s cyber-attack and three extensive public records requests in a year’s time, the plan continued on. Wilborn reviews the key areas of focus and accomplishments of the Strategic Plan. Person County Overview: 3. Wilborn introduces Mr. Ted Abernathy, with Economic Leadership, LLC. Mr. Abernathy is a managing partner. Mr. Abernathy is on hand to give Person County specific information out of a cluster analysis his firm completed. Mr. Abernathy’s presentation will be included in the minutes. Highlights of Mr. Abernathy’s presentation: -The economy is mixed and complicated -GDP will slow down this year -The country is in the biggest inflation in 40 years and the most predictable -North Carolina is in line with the national economy -North Carolina did slightly better on job growth than the nation -North Carolina has hired back more people since the start of Covid than the national average -Demographics are easier to predict than the economy. Abernathy reviewed the demographic changes. -Rural populations in America continue to retract and urban populations continue to grow -The majority of counties losing jobs in North Carolina are rural counties -As urban counties continue to grow, growth will move to surrounding counties, Person County is one of those counties. -The crisis in America now is workforce -There are millions more job openings than people -Population growth is lower now than ever before -More people dropped out of the labor market during Covid than ever before. Factors include the gains in the stock market, people flipping their homes, and the cost of child/elderly care being up. -Self Employment has grown -Mental and physical health has become a large issue during Covid, which has caused a reduction in labor force 2 of 77 EDC and PCBIC Planning Session Minutes for January 25, 2022 -How to attract the labor pool becomes the top economic development issue -Real Estate did better than people expected during Covid -There is very little available industrial real estate, the demand surpassed the supply -The housing market grew exponentially -North Carolina housing prices went up over 20% from 2020-2021 -Business growth has been high -Small business growth is expected to be high in Person County -Manufacturing grew in North Carolina in the last year, the largest growth was in transportation -North Carolina is ranked one of the best places to be for business -North Carolina is a top 5 state for manufacturing -Between 2000-2009 Person County dropped over 2000 manufacturing jobs -Person County pandemic employment was reviewed by industry -Person County needs to focus on bringing residents into the county -Site selectors are looking at the availability of skilled labor first, before any other factors -Strategic planning needs to be realistic Mr. Abernathy opens the floor to questions and comments. Wilborn begins with noting the fastest way to grow your workforce is grow your population. She asked that Mr. Abernathy share more about his article on what West Virginia is doing to grow their population. Abernathy begins by explaining that states are offering incentives to move to their state. Also, states need to look at retaining their young population and bringing them back to the county after they have completed any training. Abernathy explains he does not do site selection, but does assist companies in looking for locations to expand. He notes that companies look at various factors. John Nelms with Duke remarks all projects are different in what they are looking for. Lockhart questions what is the silver bullet, is it the service industry? Abernathy explains people are going to try to decrease the need for supply of labor. Second, will be a more increased remote worker focus and locational need. Retail will also decrease. Lockhart asks what data sources Abernathy uses, Abernathy notes he uses multiple data sources. Allen questions how the metro areas are scored. Abernathy explains they take multiple data points that are reviewed yearly. Raleigh scored one and Durham scored eight. Both are good news for Person County. Reynolds questions what is the biggest mistake rural counties have made in the last five years? Abernathy states, first is being unrealistic and spending so much time looking for the next big thing, they forget about the companies they have. If your local company is updating equipment, it is as good as a ribbon cutting. Second, would be housing. Rural counties have very little housing and little child care capacity. 3 of 77 EDC and PCBIC Planning Session Minutes for January 25, 2022 The Honorable Gordon Powell states he believes there is a certain group or population that is not being realistic on what we can do. For example, Greensboro Randolph megasite has a larger pool of workforce than we do in Person County. That site also has a larger amount of housing availability. Nelms with Duke explains the Greensboro Randolph site has done a lot of vetting in an effort to fix any problem that comes up. Powell also explains investors have put huge investments in that site, where the PCMP has been funded by tax dollars. Abernathy explains demand is up for property. The location of the PCMP is away from a main traffic thoroughfare. Danny Talbert questions how important is a major highway? Abernathy notes it is top five. Sherry Wilborn takes the opportunity to invite Blake Hall, Nate Groover, and Joe Hines from Timmons to the table. Blake Hall has worked with Sherry since the beginning of the PCMP, Nate Groover just came to Timmons from Economic Development Partnership of North Carolina working on projects from the state. They begin by noting the PCMP is unique because of the electrical capacity to the site. John Nelms explains not all projects will need that large capacity. Joe Hines explains more about data centers and their needs. He also reviews multiple other mega sites and their populations. Hines thinks a fam tour with site selectors to the PCMP could be an option to get interest in the PCMP. Wilborn explains to the board that Sallie Vaughn has created a tool to show the projects that the PCMP was in contention for and was not chosen, which the board would review after the break. Break started at 1:25 pm Back from break at 1:36 pm Funding Opportunities: 4. Wilborn moves this item until after the site and infrastructure discussion. Wilborn begins by reviewing funding opportunities, including Golden Leaf-Site Program, North Carolina Railroad, NC Cooperative Ready Sites program, Duke Site Readiness Program, United States Department of Agriculture Rural Economic Development Loan Program, and the American Rescue Plan. Wilborn informs the board this is budget season, it is her intent to put in the normal request of $250k in the budget for Economic Development. She is looking to the board for any CIP requests or other budget items. If the Commissioners grant the $250k, that would bring the Economic Catalyst fund to 1.2 million dollars. 4 of 77 EDC and PCBIC Planning Session Minutes for January 25, 2022 The four items that the board can look at for grants are the PCMP, North Park, Southside Development, or rail. Wilborn returns to Site and Infrastructure Development portion of the planning session, requesting Andy Oakley or Tommy Warren give an update on the Western Sewer Project. Site and Infrastructure Development Discussion: 5. As Wilborn shared at the last EDC meeting, the PCMP has gotten looks from large projects. The main feedback that she has received is that the site is too raw and too remote. Vaughn is on hand to present the tool she has developed. PCMP is a site that has been designed for semi- conductors. It has a large power source, water, but no rail service. It is not to say we can’t use it for other things that it was designed for. The projects that the Wilborn received RFIs on were not campus style. They were looking for a rectangular shape for a large footprint. The Greensboro Randolph site has clear boundaries and no impediments. Some projects will not build on fill dirt. The PCMP will require more clearing and grading versus other mega parks. The flood plain also provides another hindrance. A semiconductor project has required bedrock which would cause the site to be cut down 120’. Nate Groover notes all site selectors are different. He states the feedback he has received on the PCMP was the issue with labor force and connectivity to transportation hubs. If you look at residential numbers around mega sites, there are greater residential numbers around other mega sites. Wilborn explains you have to look at, can you build your project on a site before you decide if you want to build it there. EV and Battery projects have required rail. Other mega sites already have rail. PCMP does have a preliminary plan, but that will add additional time and expense Vaughn used her GIS tool to show the distance from other mega sites to interstate and rail. The sites she covered had interstate/large highway and rail in closer proximity than PCMP. The Person County Mega Site is not currently zoned industrial which is something site selectors see. Wilborn explains the Person County Mega Site is a good site. She reminds the board 10 years is the usual amount of time for a Mega Site to become occupied. Three or four years from now industrial sites are going to be getting tighter and Person County population will have grown, including workforce. 5 of 77 EDC and PCBIC Planning Session Minutes for January 25, 2022 Wilborn points out our site is still owned by a private owner, you cannot get grant funds on privately-owned property; therefore, maintaining the option is of benefit to the property owners, as well. The Honorable Gordon Powell notes all work done to the site has been county funded. He also states the county has not reduced interest in the site. The county has continued to advertise and work with Timmons. The county has been paying for that work. The site is advertised for over 1300 acres, there is 900 usable acres, and 168 acres permitted by the US Army Corps of Engineers. If a client needs more than the permitted acres, Wilborn explains the companies site plan would then go to the Army Corps of Engineers to modify the permit. Wilborn notes because there is already a permit in place, the time to get the modified permit will be less. The process should take 6 months verses two years. Wilborn explains Covid has caused more projects to come in and the Economic Development Department has not let up. Whenever a project comes in, Blake Hall, Tommy Warren, and John Nelms often sit in on the calls. Every project has to be examined separately, there is no database to pull information from. Mr. Perry questions should we be doing more targeted Research and Development for industries? Wilborn explains she is looking at all industries. She will be attending a site selector event in the coming days. Also, when site developers look they look at things like residential development. For example, the Chatham Park development is slated to have 22,000 homes in the coming years. These are all important factors. Nate Grover explains educational material is provided to site selectors. Reynolds questions Timmons about what industries do they see working well on the site? Timmons explains data centers would be a good fit. Semiconductors and Electric Vehicles would be good if the site was more rectangular. At this time Wilborn returns to Funding Opportunities. The Western Sewer project is in the land acquisition phase. Construction drawings are about 95% complete. Financing is the next big piece of the project. Brooks Lockhart explains engineering firms are speculating there could be $15 million in American Rescue infrastructure funding coming. However, the Western Sewer Project originally was slated to cost $15 million. However, with inflation, that number has risen. This means the City of Roxboro will need to find additional funding. This could mean getting more loans or grants. The financial department is looking to see if the City of Roxboro can take on those debts. This project will double the capacity on the South Side of Person County. Break started at 2:54 pm Back from break at 3:05 pm 6 of 77 EDC and PCBIC Planning Session Minutes for January 25, 2022 Closed Session: 6. Chairman Allen requested a motion to enter into Closed Session pursuant to NC General Statues 143-318.11(a)(5) A motion was made, seconded and unanimously passed to go into closed session. Motion: The Honorable Merilyn Newell Second: Dale Reynolds Closed Session was entered into at 3:06 pm A motion was made, seconded and unanimously passed to come out of closed session. Motion: Donald Long Second: Dale Reynolds Closed Session was exited at 4:13 pm Wilborn read the following motions: Request a motion to include 1 million dollars in the county’s CIP fund for the Western Interceptor Project. A motion was made, seconded and unanimously passed to include 1 million dollars in the county’s CIP fund for the Western Interceptor Project. Motion: Dale Reynolds Second: Donald Long Request a motion to engage Mr. Ted Abernathy for the next strategic plan according to the proposal the board received. A motion was made, seconded and unanimously passed to engage Mr. Ted Abernathy for the next strategic plan according to the proposal the board received. Motion: Dale Reynolds Second: The Honorable Merilyn Newell 7 of 77 EDC and PCBIC Planning Session Minutes for January 25, 2022 Request a motion to authorize Sherry Wilborn to move forward with the grant program through Golden Leaf for the North Park Site. A motion was made, seconded and unanimously passed to move forward with the grant program through Golden Leaf for the North Park Site. Motion: Dale Reynolds Second: Danny Talbert Conclude: 7. The planning session was concluded at 4:20 pm. _____________________________________ ______________________________________ Date Approved Secretary 8 of 77 EDC/PCBIC Joint Planning SessionJanuary 25, 2022 9 of 77 Thank You!! 10 of 77 2019 Strategic Plan Review 11 of 77 2019-2022 Strategic Plan Review 2018 SWOT Analysis Vision Statement “Person County Economic Development Commission is working to create opportunities for families and businesses to prosper and compete in a global economy.” 2019 Key Areas of Focus (Reviewed in August at Annual Meeting) • Education and Workforce Development • Marketing and Recruitment • Product Development • Business Support • Finding Funding Sources 12 of 77 2019-2022 Strategic Plan Review 2019 Key Areas of Focus • Education and Workforce Development Implemented the 6-14 Pipeline Program, a 3-way partnership between PCS, PCC, and PCEDC, introducing students to the needs of business and industry beginning in 6th grade in order to create a pipeline of skilled workers for existing and target sector industries • Marketing and Recruitment Developed and launched a new website with new imagery, branding, videos, testimonials, and interactive tools; advertised in numerous trade publications, attended trade conferences, participated in site selection events and cooperative marketing with state and regional partners, responded to heightened project activity, held a groundbreaking ceremony at Raleigh Regional, and supported the successful expansion of POLYWOOD, with 300 additional jobs pledged 13 of 77 2019-2022 Strategic Plan Review 2019 Key Areas of Focus • Product Development Completed a waterline to the Person County Mega Park, supported engineering costs for the Western Sewer expansion through a request to the BOC, performed due diligence studies on a county- owned parcel and obtained permits for clearing, grading, and driveway • Business Support Created the COVID Pivot Loan program, assisted with essential industry recognition to keep operations running, facilitated workforce vaccinations, as well as apprenticeship program discussions • Finding Funding Sources Received Dedicated Funding from the BOC for ongoing ED projects Grant Funds from the NCDOC RIA 14 of 77 Guest Presentation by Ted Abernathy, Economic Leadership, LLC Ted has 35 years of experience in directing economic development and workforce development programs. He was VP of the Research Triangle Regional Partnership for 8 years. He and his team now provide consultancy all across the country, including strategic planning for numerous counties and regional groups in NC. 15 of 77 Funding Opportunities 16 of 77 Funding Opportunities Golden LEAF –SITE Program •SITE Program – Identification support to identify potential industrial sites in communities that do not currently have quality industrial sites to market. (technical services) •SITE Program –Due diligence funding to complete eligible due diligence activities such as environmental assessments, archaeological analyses, and mapping. (up to $50,000) •SITE Program – Development funding for public infrastructure and, for publicly owned sites, clearing and rough grading, to benefit sites that have completed the due diligence necessary to demonstrate that the site is suitable for development. (up to $1M) APPLICATION NOW OPEN –DEADLINE TO APPLY IS NOON ON MARCH 10TH 17 of 77 Funding Opportunities NCRR Through Build Ready Sites, NCRR will partner with communities, railroads and other economic development allies across the state to provide matching funds for site needs, acting as a catalyst to advance more rail-served sites to a development-ready position. The Build Ready Sites initiative will target rail-served sites ranging in size from 50-100 acres. Examples of eligible funding uses include land preparation such as clearing or grading, utility extensions, access roads and construction of speculative buildings. Up to $500,000 or 60% of total proposed project cost, whichever is less. 18 of 77 Funding Opportunities Utilities •NC Cooperatives has a program called the Cooperative Ready Sites program •This is a type of site certification for sites located in their service area. •Once a site is approved into the program, NCEC will pay 75% of the cost of site certification for member cooperatives (or up to $20,000). The community (cooperative, economic development organization, local government, landowner, etc.) will pay the remaining 25%. •Benefits of becoming a Cooperative Ready Site: •Special recognition on the NC Electric Cooperatives website and in marketing materials. •Marketing and promotion by NC Electric Cooperatives’ economic development partners. •Research and analysis to share with prospective companies. •Increased interest from companies searching for sites for new locations and expansions. 19 of 77 Funding Opportunities ARP, Infrastructure Bill •Still awaiting guidance, recommendation is to have a plan and show how the request fits into the plan; projects of greatest impact preferred Utilities Cont’d •Duke Site Readiness Program –under revision, more to come •USDA REDL (through NC Elec Coops) 10-year, 0% interest loan –up to $1.5M 20 of 77 Site and Infrastructure Development 21 of 77 Infrastructure Development Western Sewer Expansion •Already underway •What support is needed? •What areas are affected? 22 of 77 Site Development North Park Person County Mega Park Southside Development –Strategic Plan - TBD Rail/Other –Funding Opportunities, Project Needs - TBD 23 of 77 New Housing Projects Moore County The Southern Pines project, located near where the town borders Pinehurst and Aberdeen, calls for up to 650 residential units, which could be a mix of multi-family, townhomes and single-family homes, Heading south to Chatham County, the 44-acre mixed use development Mosaic at Chatham Park is billed as the commercial front door to the enormous Chatham Park development slated to have 22,000 homes and 22 million square feet of commercial space at full build out. Mosaic saw its first tenant open in 2021. Clayton Copper District up to 480 apartments/condominiums up to 140 single family/townhome lots This 150-acre Ashby Village residential development in Sanford will kick off construction this year. Preliminary plans call for a maximum of 350 multi-family units –apartments and townhomes –in one area of the development, space for a maximum of 250 lots for single-family detached homes, and another area that has space for up to 200 townhomes. In total, that means up to 800 residences could be built on the land. 24 of 77 Closed Session 25 of 77 Person County’s Economy 26 of 77 Record business formations Record corporate profits More jobs than we can fill Record household wealth & savings Rising wages Record inflation (40/Yr ) Record trade deficits Record national debt Record inequity Record low birth rates Low labor force participation How is the US Economy? 27 of 77 Small Business Real Estate & Analytics 28 of 77 Source:Wells Fargo 2022 Annual Outlook U.S. Real GPD Growth 29 of 77 30 of 77 Source: Trading Economics Corporate profits in the United States jumped 9.7 percent to a record high of USD 2.42 trillion in the second quarter of 2021, following a 4.5 percent rise in the previous period. 31 of 77 Too many dollars chasing too few goods United States Inflation Rate (Past 25 Years) 32 of 77 Source: Bureau of Economic Analysis via Haver Analytics Personal Savings Rate Excess saving is being reduced by households-$2.6 trillion in late spring. Still well over a $Trillion 33 of 77 67% of Manufacturers say they cannot meet demand due to lack of inputs, 66% are having trouble finding labor, & 50% experiencing shipping delays 34 of 77 Percentage Annual Job Change 1990-2020 -7% -5% -3% -1% 1% 3% 5%199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020United States North Carolina Source: US Bureau of Labor Statistics 35 of 77 All States Since Start of Covid Total Non-Farm Employment Percentage Change Feb 2020 to Nov 2021 -1.6% -6.0% 0.2% -0.9% -4.7% -1.9% -4.3% -3.3% -5.7% -1.2%-… -12.8% 1.9% -4.3% -2.1% -3.2%-2.6% -3.4% -6.4% -4.2% -3.0% -4.6%-4.8% -3.7% -1.5% -2.2% -0.5% -0.9% -5.2% -3.3%-4.0% -4.7% -8.0% -1.6% -4.3%-3.9% -3.0% -3.8% -5.1%-4.9% -1.7%-1.2%-1.4% 0.2% 3.9% -5.9% -2.9% -1.8% -3.6%-3.5% -4.7% -14% -12% -10% -8% -6% -4% -2% 0% 2% 4% 6%AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyomingSource: U.S. Bureau of Labor Statistics Now 84% of the Way Back Nationally NC 88% Back 36 of 77 2.1% 19.5% 2.4% 4.3% 1.7% 3.0% 2.9% 2.2% 4.5% 0%5%10%15%20%25% Government Leisure & Hospitality Education & Health Services Professional & Technical Services Financial Activities Trade, Transport & Utilities Manufacturing Construction Total Employment Change by Sector for United States December 2020 –December 2021 Source: US Bureau of Labor Statistics37 of 77 Slowing growth in US Older Fewer kids More diverse Educated women Less marriage Multigenerational Unevenness Demographics Urban & Rural 38 of 77 Population Change 2010-2020 11.4% 14.5% 9.9% 7.4% 4.6% 15.1% -1.3%-0.9% 1.0% -0.2% -5.2% -1.1% -10% -5% 0% 5% 10% 15% 20% 5th District NC VA MD WV SC Urban & Rural Population Change Urban Rural Source: Richmond Federal Reserve, December 2021 39 of 77 Cherokee Clay Graham Macon Swain Jackson Haywood Madison Buncombe Henderson Tran- sylvania Yancey Avery McDowell Rutherford Polk Watauga Caldwell Burke Cleveland Ashe Alleghany Wilkes Alex- ander Catawba Lincoln Gaston Surry Yadkin Iredell Stokes Forsyth Davie Rowan Cabarrus Union Rockingham Guilford Davidson Randolph Stanly Anson Mont- gomery Moore Rich- mond Caswell Person Chatham Wake Lee Warren Franklin Harnett Hoke Scot- land Robeson Bladen Columbus Brunswick Johnston Northampton Halifax Nash Wilson Edgecombe Wayne Sampson Duplin Pender New Hanover Onslow Jones Lenoir Greene Pitt Hertford Gates Bertie Wash- ingtonMartin Beaufort Hyde Tyrrell Dare Craven Pamlico Carteret Growth above state average Growing below state average Losing Jobs No change –fewer than 100 jobs Source: NC Commerce D-4 QCEW 5 Year Job Growth 2015-2020North Carolina Average 3.8% 40 of 77 North Carolina Job Growth 2015-2020 84% 16% Percentage of Total Job Growth 2015-2020 Urban (6)Suburban(14)Rural (80) From 2015-2020 Rural Counties lost over 13,000 jobs or 1% of all jobs In 2020 Urban Counties had 47% of all jobs Suburban had 20% Rural had 33% Source: EMSI 2021.341 of 77 Parsing the Workforce Crisis 42 of 77 Source:JOLTS via HaverAnalytics Labor Market Flows 43 of 77 U.S. Annual Population Growth Great Depression Soldiers come home 44 of 77 U.S. Components of Population Growth Source:Brookings Dec 23, 202145 of 77 46 of 77 Childcare Services Employment is 10.4% less than Pre-Pandemic Large numbers of early retirements In 2020 42 million self- employed Among adults not working and not looking, 45% due to physical health, 20% due to mental health.47 of 77 Cherokee Clay Graham Macon Swain Jackson Haywood Madison Buncombe Henderson Tran- sylvania Yancey Avery McDowell Rutherford Polk Watauga Caldwell Burke Cleveland Ashe Alleghany Wilkes Alex- ander Catawba Lincoln Gaston Surry Yadkin Iredell Stokes Forsyth Davie Rowan Cabarrus Union Rockingham Guilford Davidson Randolph Stanly Anson Mont- gomery Moore Rich- mond Caswell Person Chatham Wake Lee Warren Franklin Harnett Hoke Scot- land Robeson Bladen Columbus Brunswick Johnston Northampton Halifax Nash Wilson Edgecombe Wayne Sampson Duplin Pender New Hanover Onslow Jones Lenoir Greene Pitt Hertford Gates Bertie Wash- ingtonMartin Beaufort Hyde Tyrrell Dare Craven Pamlico Carteret Growth above 5.7% Growing below 5.7% Losing Labor Force PROJECTED CHANGE IN LABOR FORCE AGE POPULATION Ages 25 –64 2020 -2030 North Carolina state average 5.7% Source: EMSI 2021.448 of 77 Real Estate & Housing 49 of 77 Note: Retail sales includes food services. Source:Trepp CMBS Research, January 2022 4.57% 0.52% 8.79% 1.76%2.52% 8.28%7.81% 1.14% 19.80% 2.75%2.18% 12.94% 0% 5% 10% 15% 20% 25% Overall Industrial Lodging Multifamily Office Retail percent 30 days or more Dec-21 Dec-20 Delinquency Rate by Property Type 50 of 77 Source: Federal Housing FinanceAgency/Haver Analytics North Carolina Housing Price Index 51 of 77 Housing Price Increase 2020Q3 to 2021Q3 Source: Federal Housing Finance Agency 10% to 14.9% 15% to 19.9% Over 20% 52 of 77 Business Growth53 of 77 U.S. Business Formations 0 100,000 200,000 300,000 400,000 500,000 600,000 Jan-2019Feb-2019Mar-2019Apr-2019May-2019Jun-2019Jul-2019Aug-2019Sep-2019Oct-2019Nov-2019Dec-2019Jan-2020Feb-2020Mar-2020Apr-2020May-2020Jun-2020Jul-2020Aug-2020Sep-2020Oct-2020Nov-2020Dec-2020Jan-2021Feb-2021Mar-2021Apr-2021May-2021Jun-2021Jul-2021Aug-2021Sep-2021Oct-2021Nov-2021Source: US Census Bureau; Business Formation Statistics54 of 77 Manufacturing Resurgence 55 of 77 Percentage Change Manufacturing Jobs 2010-2021 Source: EMSI 2021.3 U.S. 5.4% 56 of 77 Note: Retail sales includes food services. 15.0%13.7% 9.5%11.4% 7.4%7.6% 2.0% -2.7% 8.1% 21.0% -5% 0% 5% 10% 15% 20% 25% 2010-2021 Growth in Manufacturing Jobs Source:EMSI 2021.357 of 77 Data Analytics Rule the World 58 of 77 Forbes CNBC CEO Magazine Business Facilities 1 North Carolina Virginia Texas Texas 2 Texas North Carolina Florida Virginia 3 Utah Utah Tennessee Tennessee 4 Virginia Texas North Carolina Alabama 5 Florida Tennessee Indiana North Carolina 6 Georgia Georgia South Carolina Indiana 7 Tennessee Minnesota Ohio Georgia 8 Washington Colorado Nevada Florida 9 Colorado Washington Georgia Utah 10 Idaho Ohio Arizona Mississippi Virginia, Florida, Utah 3 of 4 Washington, Colorado, Indiana, Ohio 2 of 4 Latest Best States for Business Rankings 59 of 77 2021 OVERALL STATE RANKINGS BUSINESS CLIMATE WORKFORCE INFRA- STRUCTURE INNOVATION ECONOMIC STRENGTH TOTAL RANKINGS 1 Utah 3 1 5 18T 2 29 2 Idaho 7 15 7 16 7 52 3 Texas 23 13 1 13 17T 67 4T Indiana 14 14 23T 25 3 79 4T North Carolina 2 10 35 5 27 79 6 Florida 10 18T 14 8 31T 81 7 Oregon 28 36 10 4 4 82 8 Arizona 8 33 23T 7 13 84 9 Virginia 6 7 6 28 42 89 10 Nebraska 24 5 8 38T 20 95 11 Kansas 30 25 4 31 8T 98 12 Tennessee 9 28T 27T 26 10 100 13T Kentucky 19 18T 16 40 8T 101 13T North Dakota 4 6 3 42 46 101 15 South Dakota 1 9 11 43 44 108 16T New Jersey 50 21 26 9T 6 112 16T Massachusetts 38 4 45T 2 23 112 16T Maryland 39 16 13 14 30 112 19T Michigan 18 39 25 12 19 113 19T Washington 32 8 41 3 29 113 21 Wisconsin 33 12 27T 27 16 115 22T Pennsylvania 47 24 12 20 14 117 22T South Carolina 17 38 9 36 17T 117 22T Colorado 35 2 34 11 35 117 25 Alabama 25 35 19 34 5 118 26T Georgia 29 27 22 18T 25 121 26T Nevada 11 32 15 32 31T 121 28T California 49 34 38 1 1 123 28T New Mexico 12 49 2 22T 38 123 30 Ohio 20 26 40 24 15 125 31 New Hampshire 27 18T 47 9T 26 127 32 Minnesota 44 22 21 17 28 132 33 Iowa 42 17 17 30 33 139 34 Missouri 15 41 36T 15 36 143 35 Wyoming 5 3 48 49 40 145 36 Oklahoma 13 30 18 41 45 147 37 Illinois 48 42 29 21 11 151 38 Vermont 37 23 20 33 39 152 39 Montana 31 11 32 38T 48 160 40T Maine 34 31 44 35 22 166 40T Connecticut 40 28T 33 22T 43 166 42 Arkansas 21T 43 43 44 21 172 43 Delaware 36 37 31 29 41 174 44 Mississippi 16 48 39 48 24 175 45 New York 45 40 50 6 37 178 46 West Virginia 21T 47 36T 50 34 188 47 Louisiana 46 44T 49 45 12 196 48 Hawaii 26 46 42 47 50 211 49T Rhode Island 43 44T 45T 37 47 216 49T Alaska 41 50 30 46 49 216 top 15 bottom 15 Top 10 States Manufacturing States 1)Utah 2)Idaho 3)Texas 4)North Carolina 5)Indiana 6)Florida 7)Oregon 8)Arizona 9)Virginia 10)Nebraska 60 of 77 Top 100 Metros-Composite Index 2021(top 25 Ranked) MSA Momentum Index Cost and Business Climate Index Future Index Global Index Talent Index Total Score Overall Rank Raleigh, NC 16 1 1 20 1 39 1 Salt Lake City, UT 3 13 7 24 6 53 2 Austin, TX 6 16 2 33T 3 60 3 Seattle, WA 1 45 4 10 2 62 4 Charlotte, NC 43 4 12 9 5 73 5 Atlanta, GA 25 23 10 19 8 85 6 Dallas, TX 26 18 14 6 22 86 7 Durham, NC 36 5 21 3 25 90 8 Nashville, TN 24 12 6 47 7 96 9 Charleston, SC 12 31T 24T 17 29T 113 10 San Jose, CA 4 86 3 5 16 114 11 San Francisco, CA 5 91 13 2 4 115 12 Ogden, UT 11 10 30 54 15 120 13 Provo, UT 2 11 9 91T 9 122 14 Portland, OR 8T 77 8 21 10 124 15 Boston, MA 20 75 11 4 17 127 16 Madison, WI 30T 24 15 53 28 150 17 San Diego, CA 14 94 22 7 21 158 18T Indianapolis, IN 61 26 16 18 37 158 18T Orlando, FL 13 50 28 30T 39T 160 20 Houston, TX 34T 33T 52 1 44 164 21 Denver, CO 7 56 5 86 11 165 22 Cincinnati, OH 52 38T 38 12 33 173 23 Boise, ID 10 19 33 100 13 175 24 Greenville, SC 42 20 42 36 39T 179 25 61 of 77 Person County Labor Force –Population -Jobs Source: NC Dept of Commerce D-4 & EMSI 2021.4 18,794 18,484 12,525 9,889 35,901 40,078 0 10,000 20,000 30,000 40,000 50,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Labor Force Jobs Population +12% -2% -21% 62 of 77 Person County Jobs by Sector Source: EMSI 2021.4 3,546 1,416 0 1,000 2,000 3,000 4,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Construction Manufacturing Trade, Trans, Util Financial Activities Prof/Business Educ/Health Leisure/Hosp Government 63 of 77 -11.8% -7.6% -9.8% -39.2% -6.6% 12.0% -10.9% -6.8% -7.8% -0.4% -10.4% 4.4% 7.7% 19.3% 5.1% -1.7% 15.9% 3.0% -50%-40%-30%-20%-10%0%10%20%30% Government Leisure & Hospitality Education & Health Services Professional & Technical Services Financial Activities Trade, Transport & Utilities Manufacturing Construction Total N.C. Person Jobs Percentage Change by Sector for Person & NC 2016 –2021 Source: EMSI 2021.464 of 77 -14.6% 103.1% 63.7% 36.8% 26.0% 66.8% -7.1% 3.7% -13.8% 103.6% -10.0% -19.1% 76.1% 38.9% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% Change in Gross Regional Product 2001 – 2020 Source: US Bureau of Economic Analysis65 of 77 66 of 77 Person County Cluster Map Strong, but Declining Weak & Declining Strong and Growing Weak, but Growing 67 of 77 Source: EMSI 2021.4 Top Traded Clusters by Employment in Person County 68 of 77 Pandemic Employment Impacts in Person County Source: EMSI 2021.4 69 of 77 20.6% 16.1% 20.1% 8.8%10.5% 26.7% 6.0% 1.3%1.9% 19.1% -4.4% 2.2% 16.5% 10.5% -10% -5% 0% 5% 10% 15% 20% 25% 30%Projected Population Change 2020-2030 Source: EMSI 2021.470 of 77 13.9% 8.3%8.7% 0.6% 13.3% 15.3% 5.2% -3.2% -0.5% 9.7% 4.9% -0.6% 8.6% 7.3% -5% 0% 5% 10% 15% 20%Projected Change in Jobs 2020-2030 Source: EMSI 2021.471 of 77 Business Climate & Costs Infrastructure Workforce Site Selection Factors 1. Availability of skilled labor 91.4 2. Highway accessibility 88.7 3. Energy availability and costs 85.3 4. Quality-of-life 84.8 5. Labor costs 84.2 6. Occupancy or construction costs 80.6 7. Corporate tax rate 80.0 8. Tax exemptions 78.6 9. State and local incentives 77.2 10. Inbound/outbound shipping costs 76.8 72 of 77 Filtered by State Factors Filtered by Metro or Regional Factors Filtered by County or City Factors Site Selection Factors 1. Availability of skilled labor 91.4 2. Highway accessibility 88.7 3. Energy availability and costs 85.3 4. Quality-of-life 84.8 5. Labor costs 84.2 6. Occupancy or construction costs 80.6 7. Corporate tax rate 80.0 8. Tax exemptions 78.6 9. State and local incentives 77.2 10. Inbound/outbound shipping costs 76.8 73 of 77 Site Selection Factors 1. Availability of skilled labor 91.4 2. Highway accessibility 88.7 3. Energy availability and costs 85.3 4. Quality-of-life 84.8 5. Labor costs 84.2 6. Occupancy or construction costs 80.6 7. Corporate tax rate 80.0 8. Tax exemptions 78.6 9. State and local incentives 77.2 10. Inbound/outbound shipping costs 76.8 Metro/Regional Factors Labor/Talent Training Capacity Highways and Infrastructure QOL Supply Chains Energy Housing Brand 74 of 77 County/City Factors Available buildings and ready sites Infrastructure Approval processes Incentives Local QOL Staff Site Selection Factors 1. Availability of skilled labor 91.4 2. Highway accessibility 88.7 3. Energy availability and costs 85.3 4. Quality-of-life 84.8 5. Labor costs 84.2 6. Occupancy or construction costs 80.6 7. Corporate tax rate 80.0 8. Tax exemptions 78.6 9. State and local incentives 77.2 10. Inbound/outbound shipping costs 76.8 75 of 77 Current Reality Actions Desired Future To be successful, economic development plans need the following elements: Specific and realistic actions Aligned stakeholder expectations Clear implementation responsibility Adequate resources Measured results Sustained leadership Continuous assessment and adjustment Strategic Planning 76 of 77 •Follow on twitter @tedabernathy •LinkedIn Ted Abernathy 77 of 77 EDC Minutes for February 22, 2022 Minutes of the PCEDC Meeting Person County Economic Development Boardroom 303 S. Morgan St., Roxboro, NC 27573 February 22, 2022 Voting Board Members Present: Mr. Phillip Allen-Chairman Mr. Danny Talbert The Honorable Gordon Powell Mr. Kenneth Perry Mr. Dale Reynolds-Vice Chairman Mr. Ernie Wood Voting Board Members Absent: The Honorable Merilyn Newell-Secretary Mr. Donald Long Ex Officios Present: Mr. Brooks Lockhart, City Manager Ms. Heidi York, County Manager Dr. Claudia Berryhill, Agricultural Representative Dr. Pamela Senegal, PCC Representative Ex Officios Absent: Dr. Rodney Peterson, PCS Superintendent ED Staff Present: Others Present: Ms. Sherry Wilborn, ED Director Mr. George Willoughby Mr. Michael Thibault, Assistant ED Director The Honorable PJ Gentry Ms. Brandy Lynch, ED Senior Mr. Bo Freeman Administrative Support (Minutes) EDC Welcome and Invocation: 1. At 4:00 p.m., Chairman Allen called the meeting to order. 2. Mr. Dale Reynolds gave the invocation. 1 of 10 EDC Minutes for February 22, 2022 Approval of the January Regular Meeting Minutes: 3. Mr. Allen requested a motion to approve the January Regular Meeting Minutes. A motion was made seconded and unanimously passed for approval of the January 25, 2022 Regular Meeting Minutes Motion: Ernie Wood Second: Dale Reynolds Director’s Report: Sherry Wilborn’s presentation will be included in the minutes. 4. Wilborn noted EDC and PCBIC are sponsoring the Industrial Relations Committee meetings in February and March. At this time, there is not a lot of industry participation. January 2022 was the first meeting back since Covid. In light of this, the programming has been shifted to what would be more appropriate for the attendees, and PCC will be on hand in March to present information on programs PCC offers for small businesses. Wilborn traveled to Atlanta with RTRP for a site selection event. Representation from multiple countries were on hand to meet with those travelling with the group. Wilborn attended the EDPNC NC-100 event. EDPNC travels to different regions to meet with all 100 counties of North Carolina. Business developers got to hear from someone in every county that participated from our region. Vision 2022 is the regional economic development summit hosted by Kerr-Tar. This year’s event will be in Person County at the Kirby with local representation. Wilborn looks for direction from the board on moving forward with the business survey. Thibault suggested the questionnaire be short and to inquire of issues businesses are struggling with. Thibault recommended emailing him with comments and suggestions. Reynolds noted the Roxboro Area Chamber of Commerce would be a good way to market the survey. 2 of 10 EDC Minutes for February 22, 2022 Member and Ex Officio Comments: 5. Dr. Berryhill announces that the Piedmont Farm tour would be back, which will include four Person County farms. Dr. Berryhill provided information on the newly formed North Carolina Spiritous Liquor Advisory Council. She also reviewed an article in the North Carolina Triangle Business Journal on how the labor shortages for farmers in North Carolina ripples across the economy. The Honorable Gordon Powell reminded the board about the recent approval of funding for the runway extension project, noting half of that funding would be coming to the county on February 26th. Dr. Senegal notes the Piedmont Community College Center for Educational and Agricultural Development will break ground on the incubator over the next thirty days. Piedmont Community College is partnering with Fayetteville Tech Community College to prepare students for cyber security jobs. The Piedmont Community College Board of Trustees met and decided to shift gears on the plans for the Advanced Technology Center, downsizing the project to be similar in size to the S building that is currently on the Piedmont Community College campus. Piedmont Community College has also filled the Career and Technical position that was left vacant when Jody Blackwell retired. Brooks Lockhart announced that the City Clerk retired and another Clerk will be appointed March 8th. The new grading was completed on the uptown park area. He also noted a natural cemetery will be located in Orange County just over the Person County line. Heidi York informed the board that the Person County Commissioners held their annual retreat today. Where they were informed of the CIP request from Economic Development for the Western Interceptor project. The American Rescue Plan funding that will be coming to Person County was reviewed with the Commissioners today along with Ms. Wilborn’s request to use some of that funding for a speculative building. Chairman’s Report: 6. Chairman Allen offered no report. Next Meeting: 7. The next meeting, was announced as March 22, 2022 at 4:00 p.m. in the Person County EDC Board Room 303 S. Morgan St. Roxboro, NC. 3 of 10 EDC Minutes for February 22, 2022 Adjournment: 8. A motion was made, seconded and unanimously passed to adjourn the meeting at approximately 4:36 p.m. Motion: The Honorable Gordon Powell Second: Dale Reynolds _____________________________________ ______________________________________ Date Approved Secretary 4 of 10 EDC MeetingFebruary 22, 2022 5 of 10 Director’s Report 6 of 10 DIRECTOR’S REPORT Updates Since January EDC Meeting The Solar Ordinance was updated and approved with the following changes: The Planning Board recommended: Table 2.1 –Change “S” in the chart to “S/CD” to better reflect that it includes both a special use permit and conditional district rezoning. Section 2.3 –Change the title to “Height and Size Limitation” and include a “b” that reads: B. The maximum size of a level 3 solar energy system shall not exceed three hundred (300) acres as measured around the immediate perimeter of the panels and shall not be located within one (1) linear mile of an existing level 3 solar energy system. Section 3.1-E.2.c –include what PFAS means in parenthesis (Polyfluoroalkyl substances). The Board of Commissioners incorporated the Planning Board’s recommended modifications and adopted the Solar Ordinance with the additional modifications: Table 2.1 was amended to prohibit level 2 and level 3 solar energy systems in the RC (Rural Conservation) and R (Residential) zoning district. Table 2.2 was amended to require a 200’ setback for all level 2 and level 3 solar energy systems from the property lines and/or right-of-way lines.This setback will include area for a 150’ buffer and 50’ of open area for emergency access. Section 2.3(b) was amended to state that the maximum size of a level 3 solar energy system shall be 100 acres. Section 2.4(b) was amended to require a 150’ vegetative buffer around the perimeter of the solar energy system. Section 2.6(d) was amended to require an engineer to review the decommissioning bond amount every 3 years. 7 of 10 DIRECTOR’S REPORT Updates Since January EDC Meeting •The Commissioners unanimously authorized moving forward with the engagement with Economic Leadership (Ted Abernathy). •IRC February 8 and March 8 •Atlanta •EDPNC NC-100 •Vision 2022 – March •Project Activity •36 projects •>$3.7B investment •>14k jobs •8 inquiries, 10 PCMP, 10 no inv, 4 NP, 4 other 8 of 10 DIRECTOR’S REPORT Updates Since January EDC Meeting Discussion of Moving Forward with Business Survey with EDC and Asst. Director Who: How Broad? How: What approach(es)? What: What questions? 9 of 10 THANK YOU!! 10 of 10