The document summarizes the process undertaken by Warren County, North Carolina to develop an incentive policy to support economic development. It involved engaging stakeholders to understand goals, identifying local partners and experts, analyzing the economy, researching incentives, and defining criteria. A point system was established to determine incentive awards based on jobs, wages, investment and other factors. Draft documents were created and approved by officials. The county commissioners ultimately adopted the policy after a public discussion. The process was iterative and involved community consultation, applying lessons learned, and refining details with resources and partners.

1. Interactive
Policymaking:
Incentives
The step-by-step experience of a small North Carolina
County

2. Outline
• An interactive method to develop an incentive policy
• Warren County example
• Introduction to the county: why incentive policy needed
• Introduction to the county: demographic and
socioeconomic background
• Step by step case study of incentive policy implementation
in Warren County
• Conclusions

3. An interactive method to
develop an incentive policy
1. Engage stakeholders (businesses, residents, nonprofit, etc.)
to better understand economic development expectations,
goals, capacity and hurdles
2. Identify local partners that should be part of process
3. Identify outside experts who can assist/advise
4. Use research, interviews, and other methods to analyze the
local economy and establish economic development
priorities
5. Gather information on local incentives in region/state
InteractiveMethod

4. An interactive method to
develop an incentive policy
6. Define role of incentive policy
• Public statement of economic development goals?
• Internal guideline?
7. Identify how incentive policy can support local economic
development goals
8. Determine how incentive applicants will be assessed
• What are criteria used?
• Number of jobs and amount of capital investment are traditional
metric but these only the beginning
9. Determine how incentive award amounts will be decided
InteractiveMethod

5. An interactive method to
develop an incentive policy
10. Identify how businesses that receive incentives will show
compliance with incentive agreement
11. Formalize agreements with any partner organizations
12. Draft incentive policy and any related documents
13. Submit to county attorney and other local officials for
review
14. Submit to local governing body for adoption.
InteractiveMethod

6. Warren County Case Study
IntroductiontoWarrenCounty

7. Warren County: Location and Population
Source: Warren County, NCOneMap
19,400
19,600
19,800
20,000
20,200
20,400
20,600
20,800
21,000
21,200
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
2000 2010 2012
WarrenCo.Population
NCPopulation
NC
Warren
County
Source: 2000 and 2010 Decennial Census and
2012 Population Estimates
IntroductiontoWarrenCounty

8. Socioeconomic indicators
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
0%
10%
20%
30%
40%
50%
60%
70%
Poverty Rate Child Poverty
Rate
% in Civilian
Labor Force
% with More
than HS
Degree (25
and up)
Median
Household
Income (2012
inflation
adjusted
dollars)
Dollars
Percent
Warren County
North Carolina
Source: 2010-2012 ACS 3-Year Estimates
IntroductiontoWarrenCounty

9. Demographic composition
0
5
10
15
20
25
30
35
40
45
50
0%
10%
20%
30%
40%
50%
60%
70%
African
American*
Native
American*
White* Hispanic 2 or More
Races
Median Age
Years
Warren County
North Carolina
Source: 2010-2012 ACS 3-Year Estimates* One race only
IntroductiontoWarrenCounty

10. Unemployment
11.0
13.3
0
2
4
6
8
10
12
14
UnemploymentRate
NC Annual Unemployment
(Dec.)
Warren County Annual
Unemployment (Dec.)
Source: Bureau of Labor Statistics, LAUS, 2000-2013
IntroductiontoWarrenCounty

11. Labor force by sector
30.7%
19.2%
13.0%
10.9%
9.5%
6.2%
3.5% 3.1%
1.9%
1.7%
0.4%
7.1%
Federal, state & local govt.
Manufacturing
Trade, transportation & utilities
Education & health services
Leisure & hospitality
Natural resources & mining
Profesional & business services
Construction
Financial activities
Other services
Information
IntroductiontoWarrenCounty

12. Why an incentive policy in
Warren County?
• County lacked formal policy
• No use of incentives in recent years
• Decline of traditional industries
• New leadership on the economic development commission
WarrenCountyCaseStudy

13. Warren County case study:
laying the groundwork
• ED Director conducts numerous community meetings in
Warren County around local food and other local economic
development issues
• At the same time, county commissioners discuss need for
incentive policy
• ED Director starts to consult with outside experts
• County pursues ways to develop economic capacity through
local foods movement, using “community R&D”
• Establishes partnership with Warren County SPARC (Sustained
Participatory Action Research Collaboration)—a joint
participatory research project between UNC-Chapel Hill and
the county
WarrenCountyCaseStudy

14. Warren County case study:
laying the groundwork
• Outside experts, cont.
• EDC and ED Director seek more sophisticated understanding of
local economy and relationship of incentives to economic
development goals
• Partners with graduate student workshop to research ways to
support strong existing industries and attract new industries in value
chain
• Workshop provides memo on incentive best practices and state
trends in incentive granting
• Workshop led by Professor Nichola Lowe in UNC Department of City
and Regional Planning (DCRP)
WarrenCountyCaseStudy

15. Warren County case study:
laying the groundwork
• Outside experts, cont.
• EDC gathers more information about incentives in NC
• With Kenan Institute assistance, meetings convened with other
economic developers and experts from around the state
• Provide opportunity for sharing information, practical experience,
innovative practices
WarrenCountyCaseStudy

16. Warren County case study:
laying the groundwork
• ED Director begins to identify format and general goals of
incentive policy, including:
• Create more jobs and provide better wages/benefits for residents
• Preserve quiet, small town character
• Sustain and grow existing businesses
• Reflect county’s “homegrown” orientation
• Recognize county’s economic strengths (agriculture,
timber/forestry, textiles) and unique attributes
• Attract and retain targeted industries that “fit” county’s economy,
scale, workforce
• Encourage environmental sensitivity
WarrenCountyCaseStudy

17. Warren County case study:
crafting the policy
• Kenan Institute and ED Director work closely to:
• Determine priorities among economic development goals
• ED Director leads the “Penny exercise” with EDC board.
• Each board member allocates 100 pennies among incentive policy
priorities to determine weight given to each
• These priorities in turn become criteria for assessing projects
requesting incentives
WarrenCountyCaseStudy

18. Warren County case study:
crafting the policy
• Kenan and ED Director define incentive criteria - the behaviors
or decisions county wants to encourage
• Decide on a point system—companies are awarded points for
meeting certain criteria. Companies with a larger number of
points are eligible for larger incentive award
• Identify number of points awarded for each criterion
• 12 criteria, including number of jobs created, level of wages and
benefits, amount of capital investment, environmental impact,
industry type, in-county purchases and sales.
WarrenCountyCaseStudy

19. Warren County case study:
crafting the policy
• Kenan Institute and ED Director compose draft documents
• Documents modified based on feedback from EDC board
• Documents include
• Draft incentive policy [link to policy?]
• Incentive standards and guidelines
• Defines terms and benchmarks
• Outlines how company demonstrates it has met agreement terms
• Describes when incentive disbursed
WarrenCountyCaseStudy

20. Warren County case study:
crafting the policy
• Draft model agreement [link to agreement]
• [Anything else from agreement in slide?]
WarrenCountyCaseStudy

21. Warren County case study:
crafting the policy
• ED Director and local Workforce Development Board establish
terms of partnership
• Companies that pledge to consider residents when hiring receive
points when calculating incentive award (local hiring is one of 12
criteria)
• Those companies enter into an agreement with WDB
• WDB and company will define hiring goals, training needs
• Company provides WDB with job announcement and required
skill sets
• WDB conducts job search and forwards qualified applicants to
company
WarrenCountyCaseStudy

22. Warren County case study:
finish line in sight
• ED Director obtains approval of draft policy from other county
officials
• County attorney runs draft policy, guidelines and agreement by
experts at UNC School of Government
• ED Director formally introduces policy to county
commissioners
• Presentation at commissioners’ work session allows for questions
and discussion
WarrenCountyCaseStudy

23. Warren County case study:
adoption!
• County commissioners approve policy
WarrenCountyCaseStudy

24. Conclusions
• Process is reiterative:
• Consult
• Apply learning
• Consult again
• Process is big picture to granular:
• Start with broad, general ideas
• Use resources, community, partners, EDC board, etc. to hone
ideas
• Reassess and hone some more until all details ironed out
Conclusions

25. Conclusions
• Process takes time
• Involvement of partners and external resources produces
better policy
• More feedback
• More sources of inspiration
• Access to range of skills, perspectives
• Support of EDC board and local officials is key
• Get everyone on the same wavelength early
• Support may require explanation/education
Conclusions

26. Contacts? Further info?
• Website?
• Other resources?