Governors Club - March 3, 2015
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The Chatham Economic Development Corporation presented an economic development update to the Governors Club. They discussed Chatham County's profile and need to increase jobs and tax base through economic development. They proposed three major developments - Moncure Super Park, the Chatham-Siler City Advanced Manufacturing Site, and Chatham Park - which could bring thousands of acres of industrial and commercial space and tens of thousands of jobs over 30-40 years. Successful economic development was said to mean a larger tax base, more local opportunities, and benefits for residents and businesses.
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Governors Club - March 3, 2015
- 1. Governors Club Economic Development Update Chris Ehrenfeld, Chair Chatham Economic Development Corporation Dianne Reid, President Chatham Economic Development Corporation March 2015
- 2. AGENDA • Chatham County profile and the need for economic development • What is the Chatham EDC? • Education in Chatham County • Three Major Proposed Developments
- 3. CHATHAM COUNTY PROFILE • Square Miles: 709 (#20 largest of 100) • Population: 66,817 (July 2013 estimate) • Workforce: 33,628 (Dec. 2014) • Number of Jobs: 14,484 (Q2 2014) • Unemployment: 3.8% (Lowest in state, Dec. 2014) • Average Weekly Wage: $626 (State average $818, Q2 2014)
- 4. CHATHAM COUNTY INDUSTRIES • Agriculture 1,100 farms - largely livestock & poultry Market value of products sold >$163M (2012) Manufacturing Food manufacturing, wood products Declining base with loss of poultry plant • Other: Wholesale, Retail, Construction, Real Estate, Health Care, Professional & Technical Services, Social Assistance
- 5. THE NEED FOR ECONOMIC DEVELOPMENT
- 6. CHATHAM COUNTY PRIVATE SECTOR JOBS DECLINE • Manufacturing was 34% of Chatham jobs in 2005 • Manufacturing jobs decline exceeds new jobs added since 2005: 0 5000 10000 15000 20000 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Private Public Total
- 7. CHATHAM COUNTY IMPACT AS A “BEDROOM COMMUNITY” • 55% of resident labor force commutes out of the County an average of 26 minutes • $0.63 of every consumer dollar is spent outside Chatham County • Estimated loss in Chatham sales tax revenue = $9M 40% 27% 18% 15% County Revenue Sources Property Taxes Other Intergovernmental Transfers Sales Tax
- 8. Residential $6.5 Billion 77.13% Present-Use $1.2 Billion 13.92% Commercial $0.6 Billion 7.49% Industrial $0.1 Billion 1.46% Other Total $0.0 Billion $8.4 Billion 0.00% 100.00% CHATHAM COUNTY TAX BASE Residential Present-Use Commercial Industrial
- 9. Tax Parcels by Type
- 10. COST OF COMMUNITY SERVICES $1.14 $0.33 $0.58 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 Residential Commercial Farmland Services Cost per $1 in Tax Revenue Residential Commercial Farmland Source: Cost of Community Services Study 2007
- 11. WHAT IS THE CHATHAM ECONOMIC DEVELOPMENT CORPORATION?
- 12. ABOUT CHATHAM EDC The Chatham Economic Development Corporation is a private, non-profit organization working to make Chatham County the preferred location for emerging growth companies. By attracting new companies, helping existing businesses and assisting new ventures, the Chatham EDC encourages new job creation and private investment in property and equipment.
- 13. CHATHAM EDC OBJECTIVES Attraction Target established businesses located outside the county and encourage them to move into Chatham Retention and Expansion Support established businesses within Chatham County, to maintain existing jobs and help firms grow Entrepreneurship Help small businesses locate resources and support, including technical and marketing assistance and financing sources
- 14. Recent Chatham EDC Projects: ATTRACTION
- 16. CHATHAM COUNTY SCHOOLS (CCS); K-12 17 public schools employing 1,200+ people 3 high schools (1 alternative HS), 3 middle schools, 5 K-8 schools, 5 elementary schools Average CCS teacher salary is $49,005 86.7% teacher retention rate Higher than Chapel Hill, Durham & Orange 8,300 students – diverse student body
- 17. CHATHAM COUNTY SCHOOLS Graduation Rates 65 70 75 80 85 2006 2007 2008 2009 2010 2011 2012 2013 Graduation Rate Graduation Rate % by Year
- 18. CHATHAM COUNTY SCHOOLS All 17 schools met or exceeded growth on federally required Annual Measureable Objectives Only 14 school districts in state accomplished this CCS was the largest district in the state to do this Evaluating schools Proficiency (Achievement) vs Growth (Improvement)
- 19. CHATHAM COUNTY SCHOOLS Schools Governors Club children attend: North Chatham Elementary Margaret Pollard Middle School Northwood High School Daily Beast (formerly Newsweek) ranked it as one of the Top High Schools in America 2014-2015 #6 Best High School in NC by US News & World Report in 2013 Washington Post “Challenge School” in 2013
- 20. CENTRAL CAROLINA COMMUNITY COLLEGE Public, non-profit 2-year college Associate in Arts, Associate in Science, Applied Science, certificate programs, adult education courses Campuses in three counties (Chatham, Lee & Harnett)
- 21. CENTRAL CAROLINA WORKS Collaborative dual enrollment project High school students earn college credit by taking CCCC classes while still in high school Classes are tuition-free for high school students Texas model: Students twice as likely to enroll in and complete post-secondary education Enabling Greater Economic Development
- 23. MAJOR PROPOSED DEVELOPMENTS Proposed Industrial, Commercial and Office Space • Moncure Super Park – 1,400 acres • Chatham-Siler City Advanced Manufacturing Site (CAM Site) – 1,800 acres • Chatham Park – 7,000 acres
- 25. Major proposed Development: MONCURE SUPER PARK
- 27. POTENTIAL TARGET INDUSTRIES: Duke Power’s Site Readiness Program Results MONCURE SUPER PARK • Auto parts • Aviation parts • Plastics
- 33. FIRST AND ONLY STATE CERTIFIED MEGASITE IN NC Chatham-Siler City Advanced Manufacturing Site received State Certification on June 11, 2014
- 36. • 7,000+ acres • Live, Work, Play Community Live - 22,000 residences Work - 22 million sf of commercial space Play - 2,000 acres of parks & open space • 30-40 year build out
- 37. PLANNING FRAMEWORK: • Commercial along Highways 64 & 15- 501 and future 15-501 Bypass • Residential oriented toward stream valleys, the Haw River and Jordan Lake
- 38. PLANNING FRAMEWORK: • Locate commercial near Pittsboro and Highways • Link new neighborhoods to the Haw River
- 39. LIVE…
- 40. WORK… • 22 million sq ft of commercial space 16.6M sq ft office; 2.4M sq ft commercial; 2.5M sq ft civic Technology, biotech, clean tech and medicine • Economic impact over 40 years $154 billion for NC; $80 billion for Chatham 61,000 permanent jobs in Chatham
- 41. WORK…
- 42. PLAY…
- 43. UNC Medical Office Building Groundbreaking Dec 2, 2014
- 44. Governors Club Vicinity Map
- 45. WHAT SUCCESSFUL ECONOMIC DEVELOPMENT MEANS For Residents Larger and more diverse tax base Easier access to medical facilities, shopping, etc. Greater opportunities for local employment For Business Owners Larger consumer base and employee pool Increased business traffic Business to business opportunities
- 46. GET INVOLVED Dianne Reid President, Chatham EDC dreid@chathamedc.org 919-542-8274 www.chathamedc.org Sign up for our newsletter and stay in touch with social media
Editor's Notes
- Chris - introduction
- Dianne - Our presentation today will address these 4 topics.
- Dianne - Chatham County is a rural county in central North Carolina. Between 2000 and 2010, the population grew by nearly 30%. In spite of a low unemployment rate, the County faces challenged with providing well paying jobs for its educated and skilled workforce. While there are more than 30,000 citizens in the workforce, there are only 15,000 jobs in Chatham County.
- Dianne - Agriculture and manufacturing remain as two of the largest industries in the County.
- Dianne – now that we have some background in Chatham County, let’s talk about why we need greater economic development
- Dianne - In 2005, decline in manufacturing accounted for 34% of the job loss in Chatham County. The number of manufacturing jobs lost is greater than the number of new jobs added in 2005.
- Dianne - Because of the lack of good, well paying jobs, 55% of the resident labor force commutes out, with commute time averaging 26 minutes each way. A study of 2012 data found that residents spend $0.63 of every dollar outside of the County, amounting to over $9 million lost in sales tax revenue every year. This retail leakage can be attributed to the number of out-commuters and insufficient commercial and retail development to meet residents’ demands.
- Dianne - Chatham County’s tax base is more than 77 percent residential, about 14 percent agricultural, and less than 9 percent commercial and industrial. This creates major problems. For comparison, Lee County’s tax base is 24.8 percent commercial and industrial, Orange’s is 14.1 percent, Durham’s is 37.9 percent, and Wake’s is 22.3 percent.
- Dianne – this is a tax map of Chatham County. It illustrates that 91 - 9 statistic. White is residential tax base. As you can see, there is a lot of white space on the map.
- 10
- Chris – so now that you see that we need additional economic development in Chatham County, let’s talk about our primary vehicle for attracting more companies to Chatham County, the Chatham EDC.
- Chris - The Chatham EDC is a private, non-profit organization based in Pittsboro. We focus on attracting new businesses, retaining and expanding existing businesses, and helping entrepreneurs grow.
- Chris - The jobs and investment result from our three areas of focus: Attraction, Retention and Expansion – retain succeeding businesses and get them to grow right here in Chatham County Entrepreneurship.
- Chris – Dianne spoke of the 3 negative characteristics of a bedroom community – 1. majority of residents commute out of the county for work, 2. We spend our money out of the county by nearly a 2:1 margin, 3. we rely too heavily on commercial tax payers Wal-Mart is a great example of a Chatham EDC success that addresses all 3 of these issues… it created jobs… it has people spending money in our county and actually drawing people into our county fro neighboring counties (explain how sales tax works)… and they are a large commercial tax payer. Wal-mart wanted to be in the Chapel Hill market. Chatham County and the EDC welcomed Wal-mart with open arms and convinced them to come to CC. Now we stand to see tens of millions of $ in tax revenues over the lift of the store
- Chris – Education plays an important role in economic development. We need to train residents so we have a skilled workforce ready for manufacturers. In addition, major employers, just like residents considering moving here, look at the local schools to make sure there are quality educational opportunities for the families of their employees (Let’s talk for a moment about the strategic and differentiating role that local education plays in Chatham County’s economic development.)
- Chris - The Chatham County Public School system has 17 schools and is the largest employer in the county. Diverse student body – contrast of Northern Chatham vs Siler City
- Chris - Chatham Schools have improved dramatically over the past decade as evidences by the graduation rate improvement county wide. Chatham County Schools has exceptional leadership in place that are continuing to make our schools better every day. Graduation rate 2006 - 67.1% 2007 - 75% 2008 - 79.9% 2009 - 78.9% 2010 - 74.2% 2011- 74.3% 2012 - 81.4% 2013 - 85.3%
- Chris - The new letter grade system is based 80% on achievement. Our schools don’t do nearly as well on achievement as we do on growth. As a result, our schools got mostly B’s and C’s on the new letter grade system. Explain achievement vs growth using an example. Achievement tends to be more household income driven. Student growth we do extremely well
- Chris - Our high school has won numerous awards in recent years… Parents that look simply at test scores (achievement) typically do not select our schools yet. Parents that investigate schools by visiting the schools, talking to the teachers & school leaders pick Chatham County schools over neighboring schools. As more of these parents choose to put their kids in Chatham Schools, the achievement results will continue to improve.
- Chris - We are fortunate to have Central Carolina Community College (aka CCCC) in Chatham County with campuses in both Siler City and Pittsboro. CCCC offers both two year Associate degree programs as well as certificate and adult education courses. CCCC has been instrumental in developing workforce training programs as required by new industries entering the area. An example of this is the welding workforce training program which produced welders trained for the specific requirements of Caterpillar, Inc. and which provided graduates a higher than than average weekly wage.
- Chris - The Central Carolina Works program is funded for fall 2014 implementation and places guidance counselors in each of the Chatham County high schools to facilitate student career counseling and awareness of the CCCC collaborative programs for 2 and 4 year study. These programs allow students to take college courses and earn college credits while still completing their high school education. This innovative program originally piloted in Texas, proved participating students were twice as likely to enroll in and complete post-secondary education than those who did not participate. This program will help establish a better educated workforce within Chatham County.
- Chris – We have 3 major ongoing developments that the Chatham EDC has been working with… Dianne…
- Dianne - Three projects – two in eastern Chatham and one in western Chatham – have the potential to jump start employment growth and transform the balance of the County’s tax base.
- Dianne - Identify 3 projects on the Strategic Land Use plan map
- Dianne - The first project is the Moncure Megasite. This project was recently accepted into Duke’s Site Readiness Program which will begin this summer.
- The Moncure Megasite is 1,400 acres in southeast Chatham County. While the site is in preliminary planning stages, it shows promise with dual rail service.
- Dianne - This project recently went through Duke’s Site Readiness Program. They identified 3 potential target industries for this super park….
- Dianne – the second major project is the Chatham Siler City Advanced Manufacturing Site.
- Dianne - This slide shows the property in detail. It has almost a mile of rail frontage on the northeast border and frontage on Highway 64 on the southeast. Preliminary engineering studies indicate that 1,445 acres of the parcel are developable. The property has two owners. Both are committed to selling to an industrial user…
- Dianne - This site went through the Duke Energy Site Readiness Program in 2013. The site consultants concluded that this megasite gives the state a potentially strong competitor for an automotive project. This was the first real mention of the possibility of auto for this site. Auto is an exciting possibility as auto has the highest multiplier of any industry (6 – 9 times the # of jobs on the site). An auto manufacturer would potentially put up to $1 billion into a site immediately and typically start with several thousand jobs on the site.
- Dianne- In October 2013, Southern Business and Development magazine, a reputable trade publication, published a special edition entitled “The Southern Auto Corridor.”
- Dianne - Based on their analysis, the editor selected the Piedmont Triad as the #1 spot in the Southern Auto Corridor. Reminder, Siler City is about the same distance to Greensboro as it is to Raleigh so it identifies itself with the Triad… Editor noted, “Even though there are no rumors to base our pick, we believe that one of the next two automakers announcing Greenfield plants in the corridor will pick a site in the Piedmont Triad.” The magazine also rated the Chatham/Randolph megasite as the third best site in the south for auto assembly.
- Dianne - In June 2014, the site became the first and only state certified megasite. So when an auto manufacturer comes looking at NC, this is one of the best sites that we have the state has to offer.
- Dianne - This image shows the South Carolina BMW auto plant superimposed on the CAM site. As you can see, there is room for a plant at least twice the size of this BMW plant with additional room to enable supporting supplier manufacturing and a business park.
- Chris – The 3rd major project that the Chatham EDC is working with is Chatham Park
- Chris
- Chris - See the size of Chatham Park relative to Pittsboro
- Chris - The concept for the master plan calls for locating more intensive commercial uses near the town and highway corridors, with density decreasing as you move away from town and with open spaces preserved along the Haw River to the east.
- Chris - This conceptual drawing gives you an idea of what the development may look like. Developers have compared the expected look to something like Meadowmont. This is a good analogy, especially in terms of density ~ 3 housing units per acre (1,300 units on 450 acres;) – just on larger scale (16x) Advantages for GC by comparison: Gov Club 1,200 lots on 1,600 acres… or 1 house per 1.3 acre… ¼ of the density of CP
- Chris – RTP is the about the same # of acres & SF of commercial. RTP is home to about 150 global corporations… But RTP has zero housing.
- Chris - Chatham Park is ready to develop as a live-work-play site that will promote tech/bio-tech development so that residents have the opportunity for good, well-paying jobs within their neighborhoods.
- Chris - Plans call for an extensive trail system, tied to existing trails, providing access to the river for Chatham Park residents and employees. New Haw River access points are envisioned, including a bluff overlook. Again, 2,000 acres of parks & recreation
- Chris - The first project is a UNC medical office building being constructed across from Northwood High School which broke ground a few months ago
- Chris – GC is located almost directly between RTP & Chatham Park… GC will be able to serve as a housing option for executives… CP will not be gated and will not have a golf course. And GC is significantly less dense that CP. So in terms of housing, GC & CP are very different…. Which means CP will create future opportunities for GC.
- Chris - So what does successful economic development mean for you? For residents, a larger and more diverse tax base will relieve the residential tax burden. There will be easier access to medical facilities, shopping and more, as well as greater opportunities for local employment. For business owners, both the consumer base and employee pool will increase. Both business traffic and business to business opportunities will grow.
- Chris – 1. Visit our website at www.chathamedc.org for more information. At the bottom of the page, you can sign up for our newsletter. 2. Spend your money in Chatham County – support Chatham businesses. 3. Tell people what a great place Chatham is to live and to do business. QUESTIONS?