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06-28-2022 Meeting Minutes EDCEDC Minutes for June 28, 2022 Minutes of the PCEDC Meeting Piedmont Community College Room S-100 1715 College Dr., Roxboro, NC 27573 June 28, 2022 Voting Board Members Present: Mr. Phillip Allen-Chairman Mr. Kenneth Perry Mr. Donald Long Mr. Danny Talbert Mr. Dale Reynolds-Vice Chairman The Honorable Gordon Powell Mr. Ernie Wood Voting Board Members Absent: The Honorable Merilyn Newell-Secretary Ex Officios Present: Mr. Ralph Clark, Interim County Manager Dr. Rodney Peterson, PCS Superintendent Dr. Claudia Berryhill, Agricultural Representative Mr. Brooks Lockhart, City Manager Ex Officios Absent: Dr. Pamela Senegal, PCC Representative ED Staff Present: Others Present: Ms. Sherry Wilborn, ED Director Ms. Lauren Johnson Mr. Michael Thibault, Asst ED Director Mr. George Willoughby Ms. Brandy Lynch, ED Specialist Mr. Bo Freeman (Minutes) Mr. Woody Jacobs Ms. Samantha Bagbey Ms. Marley Spencer Mr. Scott McKinney Mr. Jody Blackwell Mr. Jay Poindexter Ms. Sherry Clayton Dr. Barbara Buchanan Mr. Ted Abernathy, Presenter 1 of 37 EDC Minutes for June 28, 2022 The Honorable Merilyn Newell was not able to attend, however, she called in in listen-only mode for the Abernathy presentation. EDC Welcome and Invocation: 1. At 4:00 p.m., Chairman Allen called the meeting to order. 2. Mr. Dale Reynolds gave the invocation. Approval of the May 24, 2022, Meeting Minutes: 3. Mr. Allen requested a motion to approve the May 24, 2022, Meeting Minutes with the changes Dr. Berryhill made that were at their seat. A motion was made seconded and unanimously passed for approval of the May 24, 2022, Meeting Minutes with changes noted. Motion: Dale Reynolds Second: Danny Talbert Strategic Action Agenda Presentation: 4. Mr. Allen introduces Mr. Ted Abernathy with Economic Leadership to present the Strategic Action Agenda. Mr. Abernathy's presentation will be included in the minutes. Mr. Abernathy explains that this is a three-year action plan. He notes there are opportunities in Person County, but there are issues. Unless some of the issues are addressed there will be no progress. For example, Person County has limited product and infrastructure issues. Lee County had the same issues but now they are exploding. Abernathy reviewed the opportunities and goals Person County can apply to be more successful. Abernathy believes Spec Buildings are risky, if the private sector is not going to do them, it is time to think about doing one. There is no product available in the county to attract the business the county is trying to get. 2 of 37 EDC Minutes for June 28, 2022 Mr. Abernathy opens the floor to questions. Mr. Perry inquired what is nonresidential tax base? Abernathy explains it is taxed on anything except for housing and apartments, that is what Person County needs to increase. Mr. Long asked Mr. Abernathy to explain more in regards to Private Investment in the PCMP? Abernathy explains Person County puts a lot into the PCMP, with limited funding. If the county can only move forward on partial site preparedness, then there needs to be a decision made if the PCMP is going to be for one tenant or will it be for multiple tenants. The goal is to be getting investment in the PCMP. Dr. Berryhill asked what other counties do for incentives? Abernathy notes a cost-benefit analysis is required. Some counties do a dashboard point-based system, clawbacks, and cash is sometimes part of it. There is a variety of options. Some places do not do incentives. Abernathy gives an example of the Randolph County Mega Site, there were multiple investments put into the site, Golden Leaf, Rail was brought, and other funds. Some funding is only available if the Public owns the site. Private owners have done work to the sites as well. Danny Talbert would like to know the main catalyst for Lee County’s growth. Abernathy replies: -They merged Economic Development, and the Chamber with another group -Route 1 was completed -Airport -Speculative Buildings -Private Sector Engaged to Construct Product Donald Long asked for suggestions on the watershed issues. Mr. Abernathy suggested getting some assistance to ensure fair treatment. After the question and answer session, Chairman Allen suggested the incoming board use their July meeting to set priorities and metrics, then come back at the August Meeting to adopt. An early start time was given for the July meeting. 3 of 37 EDC Minutes for June 28, 2022 Director’s Report: 5. Mr. Allen recognized Ms. Wilborn for the Director’s Report. Wilborn’s presentation will be included in these minutes. Wilborn thanked the new board members for being available to come to the meeting to hear Mr. Abernathy’s presentation. Wilborn provided some more information on the Golden Leaf SITE Program award. She noted Golden Leaf only grants awards to publicly owned sites. The award stipulates work be done within 12 months but an extension is possible. The Carbon Plan is shared on the County website as well as the Roxboro Area Chamber of Commerce website. She thanked the outgoing members for their service and support and highlighted some of their biggest accomplishments during their term, including 2 POLYWOOD expansions, pledging a total of 685 jobs and $61 million in capital investment. Member and Ex Officio Comments: 6. Dale Reynolds stated it had been an honor to work with everyone on the board. The public does not understand the time that has been spent and put into the board. Economic Development has a great staff, Sherry Wilborn works 120 hours a week. Reynolds thanks the new board for standing up and serving. He concludes by recommending Phillip Allen as Chairman. Ernie Wood noted the EDC was the hardest working board he has ever been part of. He thanks the board and notes he will miss everyone. Donald Long explained he had served 5 years on the board, but the last 3 years had been under duress. He appreciates recognizing the board. He continues by stating the EDC is doing work for the people of Person County. He closes by thanking Phillip Allen for his leadership. Brooks Lockhart stated that on July 2nd there would be the fireworks celebration, followed by the parade on July 4th. The City Council approved the budget for the City of Roxboro. On August 1, 2022, a vision exercise would take place. 4 of 37 Strategic Action Agenda 2022-2025 6 of 37 Post-Pandemic National Trends ▪Undersupply of labor ▪Expanded remote working ▪Widespread e-commerce ▪Accelerated automation ▪Reshoring manufacturing & supply chains ▪Affordability prioritized Current Economic Reality 7 of 37 Demographics ▪County population grew by 1.8% from 2015-2020 ▪Projected population growth 2020-2025 is 2.1%, below regional and state averages ▪Current population’s average age is 44.3, older than the 39.2 average in NC ▪Low percentage of millennials and lower than average diversity ▪Median income is 6.5% below the NC average and 18% below the national average Current Person County Economic Reality 8 of 37 Labor ▪Almost 1.5 million people of working age live within 60 miles of the Person Mega Park ▪County educational attainment levels are low, with 16.5% achieving at least a 4-year degree compared to 32.8% for NC and near 50% for Wake and Durham Counties ▪Labor force participation is low, 57.1 % ▪Roughly 10,000 residents in the county’s labor force commute out each day ▪Piedmont Community College is a strong education and training partner Current Person County Economic Reality 9 of 37 Economic ▪NC is ranked as having one of the nation’s best business climates ▪Research Triangle is one of America’s fastest growing and most competitive regions ▪Person’s cost of living is more affordable than nearby urban counties at 95.6% of the national average ▪In-county jobs declined by 6.2% over the past 5 years. COVID-19 contributed to the loss. ▪Fastest growing clusters: distribution and e-commerce, and textile manufacturing Current Person County Economic Reality 10 of 37 Real Estate ▪High demand for modern industrial buildings and shovel-ready sites ▪Limited demand for new retail and office construction ▪Local megasite of 1,350 acres is among only 5 megasites in NC ▪Limited number of ready buildings ▪Strong regional demand for new housing ▪Limited infrastructure is a throttle on growth Current Person County Economic Reality 11 of 37 Person County seeks to create a new rural model, to be a place where family and tradition are valued, where willingness to work hard can lead to success, and where leaders and local government embrace change and put in place strategies and processes to provide the best possible opportunities for all its residents. 12 of 37 Opportunities Abound To Develop a Successful Niche in the Region.The Research Triangle is at the top of national rankings for growth. Person can become known as a “community of choice” within the Triangle by promoting its affordability, attractive small-town quality of life, and a good work-life balance. To Capture Out-Commuters.The roughly 10,000 Person County residents who commute daily to jobs elsewhere represent the best opportunity for adding to the local workforce. Communicating good job opportunities and work- life balance available by working locally could be a key talent retention strategy. 13 of 37 Opportunities Abound To Grow Southern Person County.The Highway 501 corridor provides a quality link to more population and employment to the south of Person County. If the county develops the necessary infrastructure and manages watershed issues there, it can benefit from expanded population, workforce and non- residential tax base. To Invest in Piedmont Community College as an Education & Training Leader.Facilities and staffing investments that allow PCC to expand its workforce training programs will build upon PCC’s existing reputation as a responsive, high-quality workforce partner for area businesses. 14 of 37 Opportunities Abound To Have Success at the Mega Park.Continued development of the county’s Mega Park will help it compete with sites across the state and the Southeast to attract one or more major new contributors to job and tax base growth. To Benefit from Reshored Manufacturing.The “reshoring” of manufacturing suppliers back to the United States could offset the trend of reduced employment in the sector. With its proximity to major East Coast markets and rapid regional growth, Person County can benefit. 15 of 37 1-Grow the population for improved labor supply, support for existing businesses, and tax base growth in the county. 2-Develop the infrastructure -public water and sewer, broadband internet, roads, police and fire facilities, and the school facilities needed to accommodate growth across the county. 3-Attract and retain talent. Specifically, attract talented people from other parts of the Triangle region, retain existing residents who now commute elsewhere for work, and retain young people through awareness of the career opportunities and quality of life available locally. Economic Development Goals for a Better Person County Future 16 of 37 4-Prioritize the growth of existing industry as an effective way to boost investment, employment, and wages in the county. 5-Improve the availability of real estate products –new, quality industrial buildings and ready sites –to meet existing and new business needs. 6-Improve the competitiveness of Person County’s Mega Park. This could be accomplished through closing on land acquisition, initial site clearing and grading, or progress on infrastructure enhancements such as east-west highway improvements. Economic Development Goals for a Better Person County Future 17 of 37 7-Add higher-wage jobs. Targeted clusters include Automotive, Textiles, Forestry/Wood/Agriculture, Construction Products and Services, and Technology. 8-Strengthen Piedmont Community College’s existing role as a primary workforce development (education and training) asset. 9-Build consensus around a realistic shared vision of economic development, increased prosperity and opportunity in Person County. Economic Development Goals for a Better Person County Future 18 of 37 ✓Grow the population ✓Retain commuters ✓Higher wage jobs ✓Strengthen existing businesses ? 19 of 37 EDC Board Goal:Build and maintain a strategic and collaborative EDC Board that can process information, solve complex problems, make timely and effective decisions, and continuously evaluate results. EDC Organizational Goal:Make the best use of a small EDC staff through an efficient division of labor and tasks, and strategic use of contract support. 20 of 37 Incentive Policy Goal: Review the adopted economic development incentive policy, past incentive agreements, project spreadsheets and other tools to fine-tune the incentive policy to better address long-term community goals while demonstrating transparency in the county’s processes. 21 of 37 1-Meet with EDPNC and RTRP representatives to share priorities and new targeted industries. 2-Increase recruitment efforts to site selection consultants through aggressive participation with EDPNC and RTRP opportunities. 3-Conduct EDC Board member land and building product tours in Person County, as well as visits to learn about competitor offerings in the region. Conduct one of each annually. With existing EDC resources 22 of 37 4-Develop an existing industry priority contact list (based on key industries, company growth, employment, and wage levels), creating goals for regular contact with each company on the list to offer assistance. 5-Conduct an annual major employer survey to determine common competitiveness issues and share broadly with policy makers in the county and with legislators. 6-Improve the EDC website including a dashboard with board-approved metrics to gauge progress on a set of economic development and quality of life goals. With existing EDC resources 23 of 37 7-Shift a larger proportion of business and talent recruitment efforts to existing companies and individuals within the Triangle region and within a 60-mile radius of Roxboro. 8-Develop an annual event for county economic development stakeholders, business leaders and elected officials. Highlight demographic and economic trends, the intersection of economic development and quality of life, and the importance of education and training. With existing EDC resources 24 of 37 9-Contract with an environmental consultant to review the impact of watershed protection districts on economic development efforts in the county, and to suggest strategies for accommodating economic development while protecting regional watersheds & meeting regulations. With existing EDC resources 25 of 37 10-Advocate for increased funding for Piedmont Community College to improve and expand training facilities and staffing and consider a joint campaign with local partners to raise private sector funds for these needs at PCC. 11-In conjunction with the Roxboro Area Chamber, develop a retention campaign for residents who commute to jobs elsewhere, highlighting local job opportunities and better work-life balance. With existing EDC resources 26 of 37 12-Convene a meeting with state legislative representatives, NCDOT officials, EDC board and staff leaders to discuss funding options for improvements to Highway 158 between Roxboro and Interstate 85, and ways to prioritize them. 13-Stabilize, diversify, and increase Economic Development resources through public and private investors. With existing EDC resources 27 of 37 14-Close on the purchase of a core section of the Mega Park site. Pursue grant funding to begin clearing and grading of the core section. 15-Contract with a marketing firm to create publications and collateral materials, positioning the Mega Park to consultants for large industrial projects. With additional resources 28 of 37 16-Develop social media campaigns to raise awareness of Person County’s assets among firms and talented individuals in the Triangle region. 17-Dedicate seed money for a speculative building program, or as part of an initiative to incentivize building development by the private sector to improve the county’s overall ability to successfully compete when opportunities arise. With additional resources 29 of 37 Measures of Effort ▪New prospects generated ▪Prospect visits to the County ▪Site selectors contacted ▪Major local employers visited ▪Local businesses assisted ▪Web site visits ▪Social media postings/views ▪Citizens engaged in EDC activities Metrics to Measure Success (Established annually by Board) 30 of 37 Metrics to Measure Success (Established annually by Board) Measures of Impact ▪Announced new investment by EDC clients ▪Announced new jobs by EDC clients ▪Increased labor force growth ▪In-county job growth ▪Nonresidential tax base growth ▪Retail sales growth ▪New housing starts ▪Rising average wages ▪Private Investment in the Mega Park 31 of 37 32 of 37 Director’s Report 33 of 37 Updates Since May EDC Meeting Golden LEAF announced SITE Program grant awards; Person County was awarded $973,750 for the North Park site. Commissioners: •Adopted FY23 budget with $1,673,183 approved for the Economic Catalyst Fund, with $1,442,305 allocated to the industrial recruitment incentive account, which can support the ongoing work of the EDC. •Authorized easement acquisition to the County Farm which is slated to become a hiking and mountain biking park. •Received update on next steps with Carbon Plan. 34 of 37 Updates Since May EDC Meeting Request to move incentives explanation requested for May meeting by Dr. Berryhill to be a part of the strategic planning process and new member orientation. Mega Site: •PCBIC purchased the “donut hole”, or 2.5 acres at the center of southern portion of the megasite •BOC Chairman, EDC Chairman and Vice Chairman, and ED Director and Assistant Director all requested support for site development funding for the megasite through various requests made to Senator Woodard and Representative Yarborough through phone calls, in-person conversations, letters, and NCEDA Legislative Day. We asked them to support, and even supplement, the Governor’s proposed funding, as well as to consider any remaining funds in the current budget. Appointed to UDO Steering Committee; had first meeting on 6/20; draft is expected for public review and input in the Spring for adoption next May 35 of 37 DIRECTOR’S REPORT Board Accomplishments Strategic Analysis done –fully with volunteer hours Strategic Plan Adopted New EDC logo and website New Airport logo and website supported and underway New collateral for the PCMP and many print and digital ads placed Waterline to the megasite; sought funding for additional infrastructure to site Purchased a critical portion of the megasite Due diligence on North Park and awarded funding for clearing and grading Other sites evaluated which are now under private ownership for redevelopment Assessed county-wide infrastructure needs and supported the Western Interceptor through funding requests Requested the addition of the Superintendent of PCS to the EDC Partnered with PCC and PCS on the 6-14 Pipeline Program, which has received regional recognition Endured COVID and led aggressive business support efforts, including the COVID PIVOT loan program ANNOUNCED LARGEST MANUFACTURING PROJECT IN TERMS OF JOBS, INVESTMENT, AND FOOTPRINT IN AT LEAST A DECADE THROUGH 2 POLYWOOD EXPANSIONS!!! 36 of 37 THANK YOU!! 37 of 37