• Board hopes for bright future.

By NICOLE CARTRETTE
Staff Writer

Are we doing enough for economic development?

That is the question some Columbus County commissioners asked themselves at a recent planning retreat.

While a number of goals emerged from increasing funding to education to analyzing areas where employees may need to be shifted where they are most needed, economic development captured a big part of the discussion.

“We’re in this rut – we’re not doing a good job of selling Columbus County,” Commissioner Ronald Gore said. “The economic development plan that we have for Columbus County right now is broken.

“We need to sell Columbus County to the outside world and I don’t think we’re doing a good job of it,” Gore insisted.

Commissioner Bill Memory said that the board needed to evaluate what they have now and seriously consider what they want the economic development model to look like.

“Do we want to put an economic development man on the road, going to shows and traveling around the state and country?” Memory asked.

“Tourism markets Columbus County, the Chamber of Commerce and Economic Development should,” Memory said.

Commissioner Sammie Jacobs said it came down to what the board would be willing to spend on economic development.

“You’ve got to be willing to spend some money,” Jacobs said. “You can’t afford not to spend some money. When it’s all said and done in June, when we have to vote on a budget, if a two-cent property tax increase is needed for economic development or to remodel or buy a building, we have to come to a consensus,” Jacobs insisted.

Memory suggested purchasing and reselling buildings as an option the county should explore for economic development.

In recent weeks the Board of Commissioners approved a resolution to state and federal representatives calling for grant funds to purchase the shell building at Southeastern Industrial Park from the Columbus County Committee of 100.

Gore said he understood that things come down to “dollars and sense” but he didn’t agree that more money was the answer.

“We need to use the monies devoted to economic development better than what it’s being used for, in my opinion,” Gore said.

Jacobs pointed out that attracting industry and business falls into other areas of county government.

“Recreation is important and that attracts people to an area – people do look at that,” Jacobs said. Expanding infrastructure, water, sewer and fiber optics lines are things needed to boost economic development, Jacobs said.

The county is presently in the process of expanding county water availability to both the eastern and southern parts of the county.

Three major sewer projects are ongoing in the county, with one of those having been initiated by the county through a contract with Grand Strand Water and Sewer Authority, an Horry County, S.C. public utility.

The board discussed ways to help existing industry as well.

The county has an investment incentive program for existing industry that offers financial incentives for expansions that ultimately create additional jobs and boost the tax base.

Last year, International Paper received such an incentive for its multi-million-dollar expansion at the Riegelwood Plant and more recently Top Tobacco at Lake Waccamaw received one for an expansion that will add new jobs.

Chris May, president of the Cape Fear Council of Governments, pointed out as a designated tier one county, Columbus is eligible for larger state incentives and grants.

Memory suggested the board consider seeking a more experienced grant writer or better training employees who currently write grants.

Jacobs said the board would have to “lose the attitude of we’re not going to spend ‘X’ dollars on a grant writer.”

County Manager Bill Clark pointed out that the county already had a full-time grant writer. “A special projects coordinator with the county writes grants –that’s all she does,” Clark said.

May pointed out that the financial stability of county government itself plays a role in economic development.

“Companies look at your county budget, your ability to provide infrastructure and fiscal concerns,” May said. “It’s all a big picture and they look at four to five key factors.”

Included among those factors were the existing labor pool, the tax rate, schools, the quality of life, social and cultural activities and recreation.

“Our county has not been very proactive in economic development –we stood back and let the Committee of 100 do it,” Chairman James Prevatte said of the organization that formed in 1983.

“When you look at what economic development gets, we are spending very little money on it –when you look at the big picture,” Clark said. “Our economic development budget is less than $200,000 a year.”

The Columbus County Economic Development Commission was formed in 1965, according to the EDC office.

Since its inception seven directors have worked for the office, including Dick Mauney (1965-68), Rudy Walters (1968-79), Jack Erwin (1979-90), Lee Smith (1990-94), Steve Yost (1994-2000) and Phyllis Owens (2000-04).

The office has been under the leadership of a part-time interim director, Jim Hinkle, since 2004.

Hinkle said one of the first images of Columbus County that stuck in his mind was the county’s historical courthouse.

“I thought Columbus County would be a neat place to do some work,” Hinkle said.

Retired and willing to work on a part-time basis, the county pays Hinkle a salary less than what full-time developers are paid in the area. Hinkle’s part time salary with no benefits is in the $40,000 range while Bladen County’s full time director salary is more than $70,000.

The county pays for Hinkle’s travel and lodging expenses as he lives outside the county and those costs are budgeted at roughly $14,000.

“I offered to work three days a week,” Hinkle said. “But that has never worked out that way. I usually work about four days.”

“I go home on Friday but sometimes stay for a board meeting,” he said. “If a prospect comes in I’d meet them at Christmas time,” Hinkle said.

Hinkle said in terms of marketing Columbus County, there is room for improvement.

“You can always do more,” he explained but added, “There is some misconception on marketing” in terms of what is effective and what is not.

Most of his advertising budget (about $2,400) is spent on marketing the existing buildings available for sale, he said. Marketing expenses were budgeted at $4,750 and utility expenses at the industrial park made up $2,700 of the budget.

The fiscal 2007-08 county budget appropriated roughly $300,000 to economic development, but $185,834 was not actual operating expenses but economic incentives. Salaries and benefit related costs made up slightly more than $80,000 of the budget.

“Normally, prospects search the internet and the State Commerce Department,” Hinkle said.

The real selling point is once they visit the area and it comes down to determining if the location fits their specific needs, he explained.

Details such as the height of ceilings, area and location to interstates can be critical, Hinkle said.

While Hinkle’s budget was $301,968 in fiscal 2007-2008 only about $118,000 is operating expenses and salaries. Roughly $185,000 is budgeted for economic incentives.

The county economic incentive package, which offers incentives over a five-year period and is given after property taxes are paid, offers as much as 80 percent in investment incentives in some years. That plan has been in place since before Hinkle came to the county, he said.

“It’s not overly generous but it serves the purpose,” Hinkle said. “We can bargain for more. It’s not the killer most of the time.”

Hinkle added that Sen. R.C. Soles Jr. and Rep. Dewey Hill have been very helpful in helping the county to seek grants for economic development, making economic incentive packages more attractive to companies.

Hinkle said the new state prison, Tabor Correctional, would employ 500 and that the legislators were responsible for making that happen.

In fiscal 2005-06 a total of $233,091 in economic incentives was paid to companies.

In fiscal 2006-07, $122,335 went to economic development incentives and in fiscal 2007-08 another $83,889 was paid to companies.

New industry in 2005 included Idaho Timber Corporation. It was an investment of $1 million and created 40 new jobs.

Hart and Cooley, investing $6 million and creating 131 new jobs, and Eudy Cabinets, investing $1.5 million and creating 35 new jobs, came to Columbus County in 2006.

In 2007, Chaos Boat Works invested $500,000, employed 19 and reportedly intends to hire additional employees.

Direct Access is locating a distribution center in Tabor City this year. It is a $1.7 million investment that initially will create 11 jobs but grow to 29.

In 2006 and 2007 existing industry expansions included Atlantic Corporation (Tabor City), Wright Corporation (now Oak Bark), Top Tobacco, International Paper and Filtec Precise.