4/29/2020

Independent Economic Development Task Force

Meeting #22 February 5, 2014 K. Gleasman 1

Agenda

1. Review and approve meeting notes from Mtgs #20 and #21 2. Open forum with public, 30 min (5 min per person) 3. NC Dept of Commerce Data a. Wages, employed, unemployed and unemployment rate b. Number of establishments in Transylvania County c.

Deeper dive on wages 4. Targeted industries 5. Other topics from task force 6. Public Comment – Summarized Input 7. Adjourn 4/29/2020 2

Mtg 20 Meeting Notes

4/29/2020 Transylvania County Independent Economic Development Task Force 1/22/2014 Mtg 20 Members Present: Members Absent: x q Bradford Bradford x q Gleasman Gleasman x q Harris Harris Others Present: Two members of the public, Derek McCissock of Transylvania Times Recording Secretary:Karen Gleasman ITEM Review and approve Mtg Notes 19 Discussion with Dr. Patricia Mitchell Assistant Secretary x q Higgins Higgins DISCUSSION BEYOND SLIDE DECK Approved Dr. Mitchell is responsible for: Rural development Rural Grant Money Main St Rural Dev Div NC Dept of Commerce Formerly ED lead for Ashe County Appalachian Regional Commission Rural center active grants - 557 grant for $70M Grants now available for job creating infrastructure: vacant building restoration, rail, gas, critical water, broadband No ED structure required by NC board There are 80 rural counties in NC In Ashe County, Dr. Mitchell created an ED infrastructure reserve by allocation of 1/2 cent of tax rate (totalled $900K) Other topics from task force x q Incoming investment is not all that sensitive to tax rate, instead criteria includes distance to interstate, airports, workforce, Strongly recommends establishing relationship with Raleigh even though she could not point to landing a new business for Ashe County Do not rely on state to resolve economic development issues, must solve locally Set up one on one or one on two meeting to finish 1/29/14 presentation Neumann Neumann ACTION x q Watkins Watkins Public comment through email Adjourn Email account open: [email protected]

x q Whitmire Whitmire 3

Mtg 21 Meeting Notes – Public Presentation

1/29/2014 Mtg 21 Members Present: Members Absent: ITEM x q Bradford Bradford x q Others Present: Over 60 members of public live in Rogow Room of Library, others tuned into live video feed, Daily Waterfall, and Transylvania Times Recording Secretary:Karen Gleasman Public Presentation in Rogow Room of the Library Introduced team Gleasman Gleasman x q Harris Harris DISCUSSION BEYOND SLIDE DECK x q Higgins Higgins x q Neumann Neumann ACTION x q Watkins Watkins x q Purpose and Scope of discussion Economic Development Org recommendation Whitmire Whitmire Post corrected presentation deck for public Distribute video link - thanks to the Daily Waterfall and CRUNCH Media http://vimeo.com/85673809 Discuss Anticipated questions Discuss other questions Consider alternate board members - school, neither a business leader nor owner Explain 5 new, 3 net positions.

Will 5 new individuals be non-governmental?

What is being done to bring various ED efforts together?

What is meant by Business Retention and Expansion?

Three concerns: how does this relate to newly announced state initiative, where is local college in recommendation, county pays but gets 1 vote Answers to these questions can be found by listening to the video For counties who succeed there is consensus and collaboration What is timeline to move forward?

There are numerous ways for Brevard College to be layered throughout.

What will be scorecard? And how/when made public?

How will concierge help with current challenges for business with regs?

Will this org be forever public funded?

How many businesses do we have? Average wage? Wage of neighbors?

how many jobs does this involve.

How will we qualify successes to efforts of this organization?

Why is private more responsive?

How will board be selected?

Beaurocracy makes it tough for non-corporately owned businesses.

What's meant by self-renewing board?

Next Steps Public comment through email Adjourn none received prior to public presentation Email account open: [email protected]

4/29/2020 4

NC County Comparison Data from NC Dept of Commerce, Labor and Economic Analysis Div

County Average Wage/Hr Employed Unemployed Tier

Henderson Buncombe Haywood Jackson Macon Transylvania NC $17.91

$18.47

$17.79

$19.57

$16.61

$15.43

$20.07

48,891 120,669 26,826 20,054 14,633 11,376 4,315,366 2608 6426 1638 1251 1137 835 305

Unemployment Rate

5.1% 5.1% 5.8% 5.9% 7.2% 6.8% 6.9% 2 2 3 3 2 1 4/29/2020 5

Transylvania – establishments by industry sector

Industry Sector Establishments Employment Total Wages Taxable Wages

Agriculture, Forestry, Fishing & Hunting 4/29/2020 Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing Information Finance and Insurance Real Estate and Rental and Leasing Professional and Technical Services Administrative and Waste Services Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other Services, Ex. Public Admin Public Administration 122 33 31 121 19 86 69 19 845 10 43 51 90 50 21 61 19 356 385 148 1,356.00

100 141 193 117 224 $1,475,242.00 $2,083,118.00 $818,350.00 $2,136,253.00 237 1,037.00

$1,741,690.00 $8,375,658.00 1,507.00 $13,559,049.00 207 $1,177,194.00 1,257.00

305 743 8313 $2,824,260.00 $3,627,698.00 $1,567,477.00 $7,330,360.00 $1,160,048.00 $5,120,269.00 $1,798,405.00 $6,204,201.00 60999272 $2,264,593.00 $2,276,095.00 $821,430.00 $5,766,278.00 $393,479.00 $988,362.00 $1,025,311.00 $735,264.00 $1,132,721.00 $1,222,445.00 $1,771,238.00 $4,237,451.00 $982,920.00 $4,779,212.00 $1,415,238.00 $33,596.00 29845633 6

Preliminary Conclusions

• Transylvania’s unemployment rate ~1.7% higher than Buncombe and Henderson • Matching the rates would result in additional 212 people in Transylvania working (assuming no changes in workforce) • Wages are significantly lower • Do we have a higher percentage of lower paid occupations?

• Matching occupation, how do wages compare?

4/29/2020 7

Some wage data

Occupational Group

Total, All Occupations Management Occupations Business and Financial Operations Occupations Computer and Mathematical Occupations Architecture and Engineering Occupations Life, Physical, and Social Science Occupations Community and Social Services Occupations Legal Occupations Education, Training, and Library Occupations Arts, Design, Entertainment, Sports, and Media Occ Healthcare Practitioners and Technical Occupations Healthcare Support Occupations Protective Service Occupations Food Preparation and Serving Related Occupations Building & Grounds Cleaning & Maintenance Occup.

Personal Care and Service Occupations Sales and Related Occupations Office and Administrative Support Occupations Farming, Fishing and Forestry Construction and Extraction Occupations Installation, Maintenance, and Repair Occupations Production Occupations Transportation and Material Moving Occupations Transylvania

Estimated Employment

9,230 300 160 70 120 150 1,510 130 410 550 240 790 370 160 1,270 1,170 330 340 460 8530 2% 14% 13% 0% 4% 0% 4% 5% 92% 3% 2% 1% 0% 1% 2% 0% 16% 1% 4% 6% 3% 9% 4%

Estimated Entry Wage

$8.67 $21.29 $14.43 $17.10 $15.11 $13.43 $10.90

Compared to Henderson Compared to Buncombe

-4% -4% -9% 4% -18% -42% -16% -5% -11% -19% 1% -18% -43% -21%

Estimated Average Wage

$15.43 $35.89 $22.21 $24.54 $26.64 $22.55 $17.18 $10.49 $9.16 $18.33 $10.18 $8.81 $8.08 $8.08 $8.01 $8.20 $9.46 $11.95 $8.26 $8.67 $8.15 -21% -13% 6% 7% -32% 0% 0% 0% -2% -12% 6% -42% -14% -8% -12% -1% 4% 12% -13% 0% 0% -1% 0% -4% 1% -43% -15% -12% $17.35 $15.21 $33.86 $11.96 $15.48 $9.37 $10.89 $11.96 $11.46 $14.03 $16.63 $11.57 $14.50 $11.91 Henderson

Compared to Henderson Compared to Buncombe Estimated Experienced Wage Compared to Compared to Henderson Buncombe Estimated Employment

-16% -20% $18.81 -19% -23% 30,960 -20% -21% $43.19 -24% -24% 920 3% -21% -21% $26.09 -24% -22% 820 3% -8% -22% $28.25 -11% -28% 230 1% -11% -3% $32.41 -9% 0% 340 1% -17% -102% $27.10 -11% -117% 70 0% -9% -12% $20.32 -7% -10% 400 1% 110 0% -16% -14% $20.77 -14% -15% 1,660 5% -20% -15% $18.24 -22% -18% 290 1% -10% -3% $41.62 -14% -5% 1,980 6% -5% -4% $12.84 -10% -11% 1,410 5% -17% -8% $18.81 -14% -7% 490 2% 1% -9% $10.01 1% -12% 3,260 11% 3% -7% $12.30 5% -10% 1,330 4% 14% 3% $13.94 18% 4% 640 2% -43% -35% $13.09 -56% -45% 3,130 10% -11% -5% $16.31 -11% -6% 4,390 14% 250 1% 3% -1% $18.96 2% -2% 1,350 4% -60% -60% $13.22 -65% -65% 1,640 5% -15% -3% $17.42 -15% 0% 3,930 13% -24% -20% $13.79 -28% -22% 2,310 7% 100% Buncombe

Estimated Employment

118,710 4,040 3,360 1,520 1,810 890 1,960 790 6,600 1,340 10,830 5,360 2,370 15,160 3,880 2,750 14,320 18,810 60 3,590 3,990 8,020 7,270 3% 3% 1% 2% 1% 2% 1% 6% 1% 9% 5% 2% 13% 3% 2% 12% 16% 0% 3% 3% 7% 6% 100% 4/29/2020 8

Interesting to note for Transylvania County

• Zero working in the following occupations: • Architecture and Engineering • Legal • Farming, Fishing, and Forestry • Installation, Maintenance and Repair • Only 81% of total employed included in wage data • Of those included in wage data, 8% not assigned to an occupation • Therefore these conclusions are not precise 4/29/2020 9

Unexplained Differences

4/29/2020 10

Rough* Conclusions from wage data

*See Slide 6 • Transylvania has a higher percentage of Education, Training, and Library Occupations 16% TC compared to 5% HC and 6% BC Wages for this occupation ~15% lower in TC compared to HC & BC • We have a comparable percentage of food service occupations 9% TC compared to 11% HC and 13% BC • We have a lower percentage of production occupations 4% TC compared to 13% HC and 7% BC • Average and Experienced Wages are 16 – 23% lower in TC compared with HC and BC 4/29/2020 11

Targeted industry brainstormed list 10/9/2013

Goldsmith Industries

Nutraceuticals Outdoor Recreation Equipment Food and Beverage Automotive Parts

Industries

Brevard College

Industries

Aerospace industry parts Cut & Sew Composites Consider methods of mfg: e.g. precision maching, web based 3D Printing Environmental industries, e.g. recycled matls -> t-shirts Medical care recovery BRCC

Industries Target Company Profile

Rev range: $50K $50M Number of employees: 1-150 Retention/expansion of current businesses Quality of place is big draw Potential for above average pay Sports, Health, and Wellness Bamboo Camps Solo Worker Tourism 4/29/2020 Destination spa Destination health club Medical equipment Labs e.g. biomedical Research lab: e.g. farm/agri Build musical instruments Food processing, e.g. apples More movies here Artisanal agriculture, e.g. mustards, Do More bars Music recording studios Expansion of TVS Parts/supplies for existing comp., e.g. cans for OSKAR BLUES More like Everett Farms, Busy Bee Events Continuing care NOT in conflict with quality of place 12

Shall we sort by targeted industries recently published by NC Dept of Commerce?

1. Manufacturing 2. Knowledge Creation 3. Military 4. Agriculture Forestry and Food 5. Bio Pharma 6. Business Services 7. Hospitality, Tourism, & Entertainment 8. IT/Software 9. Transportation Logistics 10. Energy 4/29/2020 13

Other topics from task force members

4/29/2020 14

Public Comment – process

• Please send public comment to: o email address: [email protected]

or • Or provide in writing prior to or after each meeting.

• New email will be accessible to all task force members • Karen Gleasman will ensure written comments are passed on to all task force members 4/29/2020 15

Public Comment received through EMAIL

Unfortunately I “misspelled” email address at the end of the 1/29/14 public presentation, leaving off TC in front of TCIEDTF. My apologies, KG • Stoney Blevins – recommended funding for new org come from city as well as county • Terry Nichelson – several suggestions which can be found in their entirety on the Daily Waterfall – topics nimble, perceptions, real estate prices, message control, transplant investor wants, language choice, composition of board.

4/29/2020 16

Adjourn

4/29/2020 17

How are tier rankings made

4/29/2020 Tier rankings take into account four factors:  Adjusted property tax base per capita for the most recent taxable year (2014-15)  Percentage growth in population for the most recent 36 months for which data are available (July 2009 –July 2012)  Median household income for the most recent twelve months for which data are available (2012)  Average unemployment rate for the most recent twelve months for which data are available (September 2012 –August 2013) The years in parentheses for each variable indicate the years that are used to rank counties for 2014 tier designations. Each county is ranked from 1 to 100 on each variable, making the highest possible Distressed County Sum 400, and the lowest 4. After calculating the Distressed County Sum, counties are then ranked from most distressed (1) to least distressed (100) in order to determine their Distressed County Rank. 18

How are tier rankings made

Additional tier ranking criteria based on the Development Tier Designation statute specifies the “automatically qualifying criteria” below for Tier 1 and Tier 2 status . Tier 1 “Automatic Qualifiers”  A county must be Tier 1 for at least two consecutive years  A county with less than 12,000 people  A county with a population between 12,000 and 49,999 AND a poverty rate of 19 percent Or greater. Tier 2 “Automatic Qualifiers”  A county with a population between 12,000 and 49,999 4/29/2020 19

For example, Haywood “slipped” from 3 to 2

As an example: Haywood County continues its shift between Tiers 2 and 3. Its overall tier rank in 2014 is 79, one of the highest level Tier 2 positions, but this change only represents a loss of four places from the county’s 2013 rank. While its Adjusted Property Tax Base Per Capita rank increased from 28 th to 25 th and its Median Household Income rose from 48 th to 47 th ,these small improvements could not compensate for the county’s slowing Population Growth rate . Between 2013 and 2014 Haywood County’s Population Growth slowed from a rate of 2.95 percent to 1.23 percent, dropping its rank 16 places to 54 th . 4/29/2020 20