Chatham County Development Briefing 2009

Chatham County Developments Dianne Reid President Chatham County Economic Development Corporation March 10, 2009

Chatham County Developments

Update on Residential and Commercial Projects

Impact of Economic Recession

Success Stories

Implementation of Strategic Plan for Economic Development

Chatham County Economic Development Corporation

Update on Projects Chatham County Economic Development Corporation Projects Under Construction # Units Commercial & Office Space 2008 2009 Change 2008 2009 Change Chatham County 1,133 1,133 0 117,000 117,000 0 Town of Cary 1,692 1,692 0 0 0 0 Town of Pittsboro 1,525 1,107 -418 799,300 674,100 -125,200 Town of Siler City 126 122 -4 120,540 8,276 -112,264 TOTAL 4,476 4,054 -422 1,036,840 799,376 -237,464

Update on Projects Chatham County Economic Development Corporation Approved Projects # Units Commercial & Office Space 2008 2009 Change 2008 2009 Change Chatham County 5,543 5,489 -54 995,568 995,568 0 Town of Cary 128 128 0 0 0 0 Town of Pittsboro 864 867 3 40,000 261,800 221,800 Town of Siler City 738 531 -207 307,010 349,720 42,710 TOTAL 7,273 7,015 -258 1,342,578 1,607,088 264,510

Update on Projects Chatham County Economic Development Corporation Existing Projects # Units Commercial & Office Space 2008 2009 Change 2008 2009 Change Chatham County 4,262 4,262 0 850,280 850,280 0 Town of Cary 0 0 0 0 0 0 Town of Pittsboro 0 0 0 14,700 14,700 0 Town of Siler City 179 136 -43 29,953 106,248 76,295 TOTAL 4,441 4,398 -43 894,933 971,228 76,295

Update on Projects Chatham County Economic Development Corporation Concept Projects # Units Commercial & Office Space 2008 2009 Change 2008 2009 Change Chatham County 66 66 0 81,000 81,000 0 Town of Cary 0 0 0 0 0 0 Town of Pittsboro 5,650 1,970 -3,780 1,320,000 1,330,000 10,000 Town of Siler City 238 427 189 116,188 54,629 -61,559 TOTAL 5,954 2,463 -3,491 1,517,188 1,465,629 -51,559

Update on Projects Chatham County Economic Development Corporation All Projects # Units Commercial & Office Space 2008 2009 Change 2008 2009 Change Chatham County 11,004 10,954 -54 2,043,848 2,043,848 0 Town of Cary 1,280 1,280 0 0 0 0 Town of Pittsboro 8,039 3,944 -4,195 2,174,000 2,280,600 106,600 Town of Siler City 1,281 1,216 -65 573,691 518,873 -54,818 TOTAL 21,604 17,394 -4,314 4,791,539 4,843,321 51,782

Most economists now agree that the current recession began in December 2007. The ensuing problems of lay-offs and plant closings, reduced hours of work, lower sales, fewer orders, reduced access to credit, etc. are evident as we meet with businesses in Chatham County.

Plant Closings in 2008

Joan Fabric (Siler City) 50

84 Lumber (Siler City) 100

Pilgrim’s Pride (Siler City) 837

Lay-Offs and Idlings in 2008

Performance Fibers (Moncure) 200

Nationwide Homes (Siler City) 104

Total 1,291

In addition to these reported lay-offs, many employers are:

Not filling vacant positions

Implementing some form of job-sharing

Working week-on/week-off schedules

Reducing the number of days worked for some or all employees

Chatham County Economic Development Corporation Impact of Economic Recession

Success Stories

Despite the global recession, there were some economic development successes:

In August, Uniboard USA announced its plans to invest $142 million in a medium- and high-density fiberboard production facility in Moncure; the project retains 146 jobs and will create 104 new jobs

Success Stories

In late July, Chatham Hospital opened its new state-of-the-art facility in the Central Carolina Business Campus in Siler City; a new CCCC facility will also be constructed in the Business Campus

In November, the Chatham Loan Fund was established– in partnership with Self-Help Community Ventures – and has approved its first loan

Success Stories

The EDC is actively working on several projects that – if launched or landed – will create several hundred new jobs

In June, an economic development strategic plan for Chatham was completed, a plan that has been broadly embraced by elected officials, business leaders and citizens

Strategic Plan Implementation

The strategic plan was developed over 14 months, April 2007-June 2008, with significant community input throughout.

Plan consultants were the Center for Competitive Economies, part of UNC Chapel Hill’s Kenan-Flagler Business School

Plan found that Chatham County

Is becoming a bedroom community of the Triangle

Jobs are concentrated in low skilled, low wage industries

Is experiencing a growing wage gap between the wages of Chatham County jobs and the NC average

Leaks a large percentage of its retail sales and sales tax to neighboring counties

Consultants concluded that the County’s historic ad hoc economic development and planning approaches are insufficient to address these challenges. But…

It’s not to late to change course.

Vision for the Future:

Chatham County’s strategic location between the Triad and Triangle regions positions it as the preferred location for emerging growth companies

How do we get there? Recommendations center on three focus areas: attraction, retention, and entrepreneurship.

Other key components are: infrastructure improvement, quality of place preservation, and a reorganized Economic Development Corporation.

Attraction Recommendations

Actively market Central Carolina Business Campus in Siler City and other suitable properties for location of production facilities identified in the targeted industry cluster analysis.

Explore the development of an RTP-branded technology park to attract footloose, mid-tech companies desiring location in the Research Triangle Region.

Develop a group of cluster leaders from local businesses to assist in attraction efforts.

Retention Recommendations

Develop an aggressive industry visitation, retention, and expansion program.

Follow up with identified companies to facilitate their expansion efforts

Tie expansion incentives to an average wage standard, which is higher than the current average.

Entrepreneurship Recommendations

Organize an entrepreneurial support network.

Develop an entrepreneurial council to assist entrepreneurs.

Form stronger relationships with service providers to link entrepreneurs with technical and training assistance programs and to potential capital sources. In conjunction with these training partners, explore the feasibility of a business incubator facility.

Quality of Life Recommendations - Recreation

Aggressively pursue the upgrade and completion of the American Tobacco Trail and further explore connectivity of greenways, trails, and bike paths to downtowns and residential areas.

Identify and zone special, small-scale commercial nodes near Jordan Lake and other recreational sites. Design and planning guidelines must be developed to protect the environment in these areas.

Quality of Life Recommendations – Small Areas/Downtowns

Engage in small-area planning in unincorporated areas (Moncure, Bear Creek, etc.) to build upon community preferences in economic development and planning.

Work with the incorporated municipalities to develop a Main Street-style program to address downtown economic development and planning issues.

Quality of Life Recommendations – Restaurant and Retail

Designate commercial zones within municipal areas and within the County’s economic nodes. Use design guidelines to control building facades, mitigate traffic, and protect the environment.

Hold public hearing to explore allowing liquor-by-the-drink.

Infrastructure Recommendations

Properly plan but aggressively promote water and sewer expansion for existing or planned development and economic development needs.

Work with Internet access providers to provide broadband Internet and/or other high-speed access to its citizens.

Gain a competitive advantage through world-class information technology infrastructure development in the Central Carolina Business Campus and prospective technology park.

Conduct an infrastructure study to develop a detailed infrastructure inventory.

EDC Reorganization Recommendations

Reorganize the EDC Board of Directors with a preference for non-voting elected officials and designated slots for representatives from industry cluster representatives and entrepreneurs.

Form attraction, retention, and entrepreneurship committees to mobilize volunteers in plan implementation.

Hire additional staff to assist with retention efforts and plan implementation.

Transition to a public-private partnership or Committee of 100 model, and diversify the funding base through private-sector contributions and town funding.