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HomeMy WebLinkAbout2017-03-30 Special Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, MARCH 30, 2017 PAGE 721 ASSEMBLY The New Hanover County Board of Commissioners met for a Joint Special Meeting with the Wilmington City Council on Thursday, March 30, 2017, at 2:35 p.m. in the Andre’ Mallette Training Center, New Hanover County Government Center, 230 Government Center Drive, Wilmington, North Carolina. Members present: Chairman Woody White; Vice-Chairman Skip Watkins; Commissioner Jonathan Barfield, Jr.; Commissioner Patricia Kusek; and Commissioner Rob Zapple. Staff present: County Manager Chris Coudriet; County Attorney Wanda M. Copley; and Clerk to the Board Kymberleigh G. Crowell. City of Wilmington Councilmembers present: Mayor Bill Saffo; Mayor Pro-Tem Margaret Haynes; Councilmembers Neal Anderson; Paul Lawler; Kevin O'Grady; Charlie Rivenbark; and Earl Sheridan. City of Wilmington staff present: City Manager Sterling Cheatham; Interim City Attorney Amy Schaefer; and City Clerk Penny Spicer-Sidbury. Chairman White and Mayor Saffo called their respective Boards to order for the Special Meeting reporting that the purpose of the meeting is to receive an update on the Garner Economic Development Report (Garner Report) and any other topics either Board identifies. County Manager Coudriet and City Manager Cheatham thanked the County Commissioners and City Council for scheduling the joint meeting. The information presented will be an overview of the economic development successes and accomplishments, based on the Garner Report, of the governing bodies over the last three years. County Manager Coudriet stated that one of the five items determined by the governing bodies as a priority of the Garner Report was Item 14, “Rebuild” New Hanover County. The governing bodies defined it as building infrastructure for water and sewer on US Highway 421. County Manager Coudriet asked Chief Strategy and Budget Officer Beth Schrader to provide the update. US Highway 421 Water and Wastewater, Rebuild New Hanover, Garner Report Recommendation #14 Chief Strategy and Budget Officer Beth Schrader presented the following update on the US Highway 421 Water and Sewer Project:  US 421 Corridor – Project Scope:  Preliminary Engineering Report (PER) estimated that there would be a demand need of 660,000 gallons per day (GPD) for water and wastewater by 2040.  In the design phase, Zones 1 and 2 will be the primary focus, expect Zones 3, 4, and 5 will be served via smaller connections to the larger main and wastewater conveyance system.  Project divided into Phases:  Phase 1 assumes 330,000 GPD.  Includes 1,500 gallons per minute (GPM) fire flow and hydrants.  Expected to serve corridor until 2028 based on assumed rates and projections (excludes existing development / businesses which are not included in the demand).  Primary focus:  90 percent of water and wastewater demand to come from Zones 1 and 2.  Zones 3, 4, and 5 to be designed and constructed in the future:  Zones 3, 4, and 5 will be served by smaller connections to the larger water main and wastewater conveyance systems being run in Phase 1 likely via separate collection and distribution system to be designed and constructed in the future:  Zones 3, 4, and 5 have potential to serve substantial portions of this from the existing (or with extensions to the) Flemington water line.  Zones 3 and 4 wastewater service will be determined under a future project but may require a low pressure collection system.  Alignment primarily in US 421 Right of Way (ROW):  Project pathway to control costs and minimize disruption to drivers is to have the wastewater force mains and the water mains be co-located on the same side:  Southern end of project both water and sewer lines on east side of US 421 from Isabel Holmes bridge to Eagle Island Seafood (at this point the east side gets congested with utilities).  At Eagle Island Seafood, cross US 421 to west side and run both lines up the west side until reaching to I-140; further would require 20-foot-deep trenchless crossing under the I-140 embankment and another under the west bound off ramp.  At I-140, cut both lines back to the east side of US 421 and run all the way up east side and will use short side / long side method using eight-inch cross lines, and will likely run an extension of the water line up a portion of the west side.  Expectation is that this will go up into Zones 1 and 2 to serve the rest of these zone areas.  Project Funding:  Design: $ 1.6 million (New Hanover County)  Easement Acquisitions: $ 0.5 million (Cape Fear Public Utility Authority)  Construction: $16.3 million (Cape Fear Public Utility Authority / Connect NC) NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, MARCH 30, 2017 PAGE 722  Total: $18.4 million **Project costs in excess of total will be responsibility of New Hanover County  Model Assumptions:  Uses regional industrial forecasts from FOCUS project for City and County for consistency.  Weights suitability of US 421 sites relative to other New Hanover, Pender and Brunswick sites.  Investment value estimated based on appraised value / acre and floor-to-area ratios.  Projected Development through 2040: Investment Scenarios Do-Nothing Scenario Conservative Most Likely Optimistic Square Feet 478,750 957,505 1,816,263 2,675,022 Jobs by Type: Lower skill Industrial 239 100% 110 10% 209 10% 308 10% Higher skill Industrial 0 0% 771 70% 1,462 70% 2,153 70% Commercial 0 0% 220 20% 418 20% 615 20% Total Jobs 239 1,101 2,089 3,076  Do-Nothing Scenario: Do not put in water and sewer.  Conservative Scenario: Put in water and sewer and do nothing else.  Most Likely Scenario: Put in water and sewer, do what we do today (have funding available to respond to requests).  Optimistic Scenario: Put in water and sewer. Concerted recruiting efforts, joint incentive policy, targeted marking and active recruitment of catalytic projects and higher skill / value projects identified in the Garner Report.  Return on Investment:  10 percent land value increase associated with water and sewer install.  County investment of $1.6 million expected to be paid back within 9 years:  High-value industries accelerate this timeline.  “Most Likely” Scenario: Year: Cumulative Assessed Tax Base (in millions) Year 0 $5.1 Year 5 $48.0 Year 10 $90.8 Year 15 $133.6 Year 20 $176.4  Next Steps:  2017:  6/29: Bid Documents Complete  7/24 - 8/11: Advertise  8/14: Bid Date / Bid Opening  December: Notice to Proceed / Begin Construction  December 2019: Construction Complete In response to Board questions, Ms. Schrader stated that there are 982 acres of immediately developable land. This is the least expensive land of the whole area to develop due not being in a flood plain, having no wetlands, not being in Conservation Overlay District, etc. The primary focus area of Zones 1 and 2 are approximately 804 of the 982 developable acres. County Manager Coudriet stated that without the partnership between the Cape Fear Public Utility Authority (CFPUA), the City and County, and economic development partners, particularly Wilmington Business Development (WBD), the project would not be at this point. The County believed it would invest more than $2 million. The amount has been reduced to $1.6 million due to the use of many resources beyond the City and County. A brief discussion was held that WBD and the local commercial brokers in the area are getting the word out. Economic partners such as WBD are in the very early stages of communicating this to prospective clients, site selectors and relocation consultants. Although a firm “ready” date has not been set, it is already being discussed with a variety of people that make a difference in the economic development community in-state and across the country. Regional Marketing Efforts, Garner Report Recommendation #2 County Manager Coudriet reported that there are three things going on under the regional marketing efforts recommendation: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, MARCH 30, 2017 PAGE 723  Southeast Partnership Micro Marketing Alliance: The County agreed to enter into a funding partnership with the Southeastern Economic Development Partnership for three years at $60,000 specifically for the purpose of funding a micro marketing alliance. The alliance is comprised of Pender, New Hanover, and Brunswick Counties. These counties are generally defined as the Wilmington area. The agreement is in year three and the Board will need to decide on funding the alliance into years four, five and six. Assistant County Manager Tim Burgess has been staffing the meetings over the past year. A funding recommendation for it will be in the recommended budget. The Southeastern Partnership has been working with the Brunswick Economic Development Corporation, WBD and Wilmington International Airport to promote and emphasize a familiarization via national calls to share what is happening in southeast North Carolina. In February 2017, the Southeast Partnership hosted a development partner from Georgia and promoted the value and assets of this region, particularly the ports. The entity was not overly familiar with our ports system and the opportunities available in this area. There is good work being done but it is not done on this front.  Wells Fargo Tournament Marketing: The Wells Fargo Tournament was chosen by both elected bodies as a starting point to market the five county region. The “Choose Cape Fear” campaign is another example of trying to work on a regional basis to articulate the specific value proposition of why doing business in the five county region is a good choice. The City provided $50,000 in funding and the County provided $75,000 in funding toward this effort. Marketing efforts will extend beyond the tournament. The micro site “Choose Cape Fear” has been launched and there will be partnership with the Wilmington Chamber and others to promote it. There will be a review after December 2017 of what is happening and discussion held about how “Choose Cape Fear” continues to have momentum going forward into the end of next fiscal year and into the future. In response to Board questions, County Manager Coudriet was unable to state a particular project/job that has been announced due to the efforts of the Southeast Partnership. The efforts have really helped broaden awareness of the region. The Georgia entity visiting the area was not familiar with the region and are in the business to try to develop activity that is in support of the ports. Their goal was to understand and explore how they could potentially develop projects in our region as it relates to their business.  InnovateNC: This is a partnership between the City and the County. InnovateNC allows both governing bodies to narrow in and focus on the marine and life sciences industry cluster as identified in the Garner Report where this area has a competitive advantage. There has been a lot of work regionally with Brunswick and New Hanover Counties and public and private leadership in developing the capacity to grow the cluster’s activity. County Manager Coudriet asked that Strategy and Policy Coordinator Jennifer Rigby provide the brief history and overview of InnovateNC. Strategy and Policy Coordinator Jennifer Rigby reported that in the summer of 2015 the City of Wilmington, New Hanover County, the Town of Leland, and UNCW submitted a proposal to NC State University’s Institute for Emerging Issues to work on a cross-city learning collaborative called InnovateNC that was designed to spur innovation broadly within the State so that communities could build capacity and support. The proposal was focused on building an economic development cluster around marine and life sciences. In the fall of 2015 the proposal, along with Greensboro, Pembroke, Asheville and Wilson communities was awarded. Over the past two years, we hosted a site visit for the other communities and partners, participated in cross-city convenings, and held numerous Innovation Council and Executive Council meetings to develop a strategy tailored around key assets within our community to grow and support marine and life sciences. She then presented the strategy, initial successes and opportunities for the future:  Who we are:  Naming ourselves Innovate SENC for Southeastern North Carolina, we are a collection of organizations ranging from local governments, educational institutions, businesses, and incubators.  We are very fortunate to have the broad cross section of talent in each industry on the Innovation Council and the level of knowledge and expertise of the Innovation Council is one of our areas most significant assets.  Mission: Innovate SENC will drive cross-sector cooperation to create a team focused on growing the talent pipeline, increasing access to capital and technical support, and fostering growth of the marine and life sciences sectors:  The Innovation Council has diligently worked for months on collecting data, developing a marketing plan, analyzing policy, and developing a strategy to move forward our collective vision of Southeastern North Carolina becoming the leader for innovative solutions in marine and life sciences.  Strategic Initiatives 5x5:  Strategy is called the 5x5 as it references accomplishing five key strategic initiatives within a five- year time frame:  Educated Workforce: Focused on increasing the number of students participating in marine and life sciences at the high school level and on establishing new programs that support marine and life sciences at the institutes of higher education. New Hanover County Schools, Cape Fear Community College, Brunswick Community College and UNCW all have initiatives aimed at accomplishing these goals which will ultimately create access to an educated and skilled workforce. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, MARCH 30, 2017 PAGE 724  Capital: In order to increase the access to capital in our region the focus is on increasing the grants awarded, increasing the per capita exports, and increasing early stage, mid-level and venture capital opportunities. Marine Bio-Technologies Center of Innovation (MBCOI) and MARBIONC can support and coach companies on grant applications, a coordinated strategy to increase exports can be accomplished with the Foreign Trade Promotion Council, and the Wilmington Chamber of Commerce is already measuring early stage and venture capital on its Score Card.  Technical Support/Supply Chain: Any community economic development professional will say effective economic development strategies should include retaining the businesses you have, grow the businesses you have, and then attract businesses to your community.  Networks/Dealmakers: It’s often not what you know but who you know. We would like to connect our entrepreneurs to successful companies and encourage spin off companies instead of inadvertently suppressing young entrepreneurs. Our companies and businesses can play a strong role in this initiative.  Cluster Development: How are we establishing our credibility within the cluster through promoting ourselves in publications and accomplishments, coordinating trade shows, and increasing industry conferences in our region. Working with the Wells Fargo marketing plan to highlight our assets and elevate our presence on a broader scale is an example of this effort.  Successes:  There have been two large announcements and accomplishments. Both give a large portion of the credit to the work of Innovate SENC and the coordination and support marine and life sciences have within the region:  First success is FISH 2.0:  FISH 2.0 is a global competition designed to connect seafood businesses and investors in a targeted effort to support and grow the sustainable seafood sector. This is done through two global tracts. The first is based on transparency and traceability of seafood and the second is based on supply chain and innovation. Out of these two global tracts there are six regional workshops and tracks designed to attract businesses with the most promise to succeed at the global competition. Because of the synergy created through Innovate SENC, our community was able to petition FISH 2.0 to establish our region as the shellfish and crustaceans track for the global competition. This means, all of the new and emerging companies related to shellfish and crustaceans that would like to participate in the global competition for investment will have the opportunity to come to Wilmington, practice their pitch and make local connections so that they can be successful at the global level. This positions our region well for establishing our credibility as the leader for innovative solutions, as well as attracting new and emerging businesses, in marine and life sciences.  Second success: National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL):  This Institute (based at the University of Delaware) includes more than 150 companies, educational institutions, nonprofits and government partners. Recently, a $240 million grant was awarded to support NIIMBL with the development of new biopharmaceuticals. This means UNCW is formally considered a Tier 1 partner offering expertise in management and technical leads in developing new bio-therapeutic drugs, bringing them to market, and developing new USA-based manufacturing processes. This partnership and subsequent grant will allow UNCW the opportunity to function as the research and development arm of industry by creating and facilitating development of new pharmaceutical entities while producing the next generation of highly skilled workers for the biopharmaceutical industry. This creates consortia of university and industry including the regional partners of Innovate SENC.  How can government help:  By commissioning the Garner Study and the identification of marine and life sciences as a target sector, the governments have already provided guidance and support around the type of businesses our community would like to support. This is a huge step forward in consolidating support around marine and life sciences and has resulted in receiving the attention and support of the State through Innovate NC, the attention of FISH 2.0, and the attention of NIIMBL. These early wins have established momentum within our community.  Access to technical support and supply chain:  Goal 1: Retain 90 percent of all marine and life science businesses:  Initiative 1: Create a business survey to identify the gaps and needs of the business community.  Goal 2: Expand the number of jobs and revenue in marine and life sciences annually:  Initiative 1: Create a welcome kit and include information on processes for expanding businesses in counties and cities.  Initiative 2: Implement a user-friendly interactive techtopia-like map.  Initiative 3: Increase the number of companies that start-up and accelerate through coordinated services which meet the needs and gaps of targeted industries.  Goal 3: Attract emerging and established marine and life science businesses to the region:  Initiative 1: Create local incentives for marine and life science companies.  Initiative 2: Streamline local government land use and development regulations for new marine and life science companies. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, MARCH 30, 2017 PAGE 725 In response to questions about access to capital, Ms. Rigby explained the regional workshops are practice pitch sessions. When the businesses go to the global competition in the fall that is when they are connected with investors. FISH 2.0 is trying to help make this connection to the investment community with these new and innovative businesses. County Manager Coudriet stated that InnovateNC addresses recommendation Item 17, Facilitate Regional Efforts to Grow the Talent Pipeline, of the Garner Report. There has been a lot of success but there is still a lot of work to do. It is positively enhancing and building the overall capacity specific to marine and life sciences. Special Use Permit Requirements, Garner Report Recommendation #5 County Manager Coudriet stated that the Garner Report recommendation on the Special Use Permit (SUP) requirements was to eliminate or modify it. As there was no interest in eliminating it, there was a lot of work over several years to make it better and more clear. He asked Planning and Land Use Director Chris O’Keefe to present information on the SUP and its compatibility with the Garner Report. Planning and Land Use Director Chris O’Keefe provided a brief overview of the history of the SUP amendment. An ordinance was developed in 2011 at a time when the County was under the threat of being deemed a non-attainment county for air quality due to sulphur dioxide levels. It grouped industries into four broad categories and required a staff interpretation to determine what process an industry would be required to go through before it could gain approval: The Pathways to Prosperity report identified several unintended consequences of the 2011 ordinance stating that it would be highly unlikely that any of the recommended target industries would locate in the County if they had to go through this onerous process. It also identified the organization of the Table of Permitted Uses (TOPU) as being too broad to the point that it could influence the economic vitality of the County. Since 2011, efforts by both the business community and the environmental community, through the NC Coastal Federation, to rewrite the SUP requirements yielded options that ultimately did not gain support. As such, County staff was directed to create a draft amendment adding clarity and predictability, to present to the Planning Board for their consideration. The Planning Board held a series of work sessions to fine tune the language and find consensus between the differing points of view of the stakeholders. The amended version was recommended by the Planning Board and adopted by the Board of Commissioners earlier this month. He then presented highlights of the new language explaining that the revised TOPU has been changed to rely on North American Industrial Classification System (NAICS) codes to clearly differentiate between manufacturing uses: NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, MARCH 30, 2017 PAGE 726 Director O’Keefe then reviewed the 16 industries that were identified as being “intensive manufacturing”. These industries are now allowed only in the I-2 heavy industrial district and only after receiving a SUP: 1. Animal Slaughtering and processing 9. Alumina Refining and Primary Aluminum Production 2. Pulp, paper and paperboard Mills 10. Secondary Smelting and Alloying of Aluminum 3. Petroleum and Coal products manufacturing 11. Foundries 4. Pesticide, Fertilizer, and Other Agricultural 12. Fuel Bulk Storage facilities Chemical Manufacturing 5. Explosives manufacturing 13. Electricity Generating Facilities 6. All Other Miscellaneous Chemical Product 14. Sanitary landfills and preparation manufacturing 7. Cement Manufacturing 15. Mining and Quarrying (Low intensity) 8. Lime and Gypsum product Manufacturing 16. Mining and Quarrying (High intensity) A new heightened process was developed for intensive manufacturing. The process includes a requirement that the applicant hold a community information meeting before submitting an application; that the application be submitted 35 business days before the first public hearing instead of 20 business days; and that the applicant disclose any Federal, State or local permits that will be required before the industry can begin operations. In addition to these requirements for intensive industries, the new language clearly lays out all application and site plan requirements in a list format so that they can be easily followed. The timelines for public notification and the posting of information on the Planning and Land Use department website are defined and the process for getting additional information from applicants is clarified. The new language and TOPU allow a clear path to approval for most manufacturing industries. Each optimal target industry is permitted by-right in the industrial zoning districts. A heightened process is in place for the most intensive manufacturing industries. The language balances many of the concerns voiced by those who participated in the process. In response to questions, Director O’Keefe stated that as the process moved forward, several citizen groups reviewed the maps and believed that the proposed language would rezone property near where they lived to allow heavy industries near their homes. After staff researched the areas of concern and the zoning districts, it was determined that for the most part these areas were developed areas. As such, the uses of concern to the citizen groups will have to go through the SUP process. Additionally, these amendments are leading towards the creation of the Unified Development Ordinance (UDO). The process will allow opportunities to address some of these districts where development has already occurred and allow consideration of changing the classification. Director O’Keefe also confirmed that the North Carolina Coastal Federation, Business Alliance for a Sound Economy (BASE), and the Wilmington Chamber came together in agreement and gave full support of the final SUP. In regard to the 20 and 35 business day process, he explained that it is counting backwards from the first hearing date where the application will be considered. Non-intensive manufacturing uses will have 20 business days and intensive manufacturing will have 35 business days. There is still at a minimum two full public hearings and either the Planning Board or County Commissioners can request more information. County Manager Coudriet stated that the governing bodies can consider this a goal attained. It should now be much easier and more consistent for people to do business if they are looking to either expand or bring jobs into the unincorporated county. Support for Film Incentives Statewide, Garner Report Recommendation #16 City Manager Sterling Cheatham stated that Assistant to the City Manager for Legislative Affairs Tony McEwen would like to provide an update on the activities underway to try to revitalize the film community locally and statewide. Assistant to the City Manager for Legislative Affairs Tony McEwen thanked the local legislative delegation and governing boards for partnering on the film incentive issue to move it forward. He reported that the $30 million grant program for the film and entertainment fund is in the second year of a two-year cycle. There are three major barriers to bringing film jobs back to Wilmington and across the state to 2012-2013 levels: 1) adequate resources to the film incentive; 2) the form of the resources; and 3): House Bill 2. Governor Cooper’s initial budget includes a proposal to return the film incentive to what it was with no cap and it is estimated to cost between $20 million to $40 million for the first couple of years. Senator Michael Lee and Representative Holly Grange have introduced concurrent bills in the Senate and the House that would provide $55 million in grants. The key factor of these concurrent bills is that the grant funds are to be recurring funds. This will alleviate the film industry’s issue with only knowing what is going to happen in two-year cycles. Governor Cooper is expected to sign the repeal of House Bill 2. The initial response from the National Collegiate Athletic Association (NCAA) is that this is in line with what they want. It remains to be seen if this is the same with the film industry and there are not many conversations being held about it. In response to questions, Mr. McEwen confirmed that the main issue for the film industry is the predictability of knowing what and how much funding will be available. He feels the actions of Governor Cooper and the local delegation are positive. The revenue has gone to Georgia and California as well as South Carolina. At the height of the film industry in this community, it was responsible for $400 million to $500 million in revenue. In response to additional questions, Mr. McEwen stated he feels there are more supporters now than in the past with this proposed legislation. Tom Fetzer of Fetzer Strategic Partners also reported that Senator Michael Lee has been instrumental in getting Senator Phil Berger to commit to making the grant a recurring item in the budget. This commitment means there will be continuity for the long term. The next step is to see if there will be support for NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, MARCH 30, 2017 PAGE 727 an increase in overall funding as well as being a recurring item in the budget. Everyone is cautiously optimistic this will happen. Regional Effort to Grow the Talent Pipeline, Garner Report Recommendation #17 In the essence of time and due to the InnovateNC presentation from Strategy and Policy Coordinator Jennifer Rigby addressing this recommendation, County Manager Coudriet suggested this item be skipped. He stated that the Career and Technical Education High School project is also compatible with the Garner Report. It will open August 2017 and will create an avenue for people to graduate from high school and be employable in the technical fields. Develop a Realistic and Sustainable Incentive Policy, Garner Report Recommendation #4 County Manager Coudriet stated that the recommendation to develop a realistic and sustainable incentive policy has had the least amount of success. Other items such as film incentives and water and sewer expansion took priority. He would like for the governing bodies to inform staff if they are to do more work on this recommendation. He then asked Chief Strategy and Budget Officer Beth Schrader to provide the overview of the recommendation. Chief Strategy and Budget Officer Beth Schrader presented an overview of the recommendation to develop a realistic and sustainable incentive policy:  Garner Report Recommendations:  Written Incentive Policy:  Transparency  Predictability  Common criteria / framework for City and County  Tied to desired outcomes In April 2015, staff circulated a draft proposed policy which was discussed by the elected bodies. In October 2015, the General Assembly made sweeping changes to the enabling legislation that authorizes and defines what a city and county may do in regards to incentives:  Enabling Legislation General Statute 158-7.1:  Broad discretionary language modified.  New procedural requirements:  Expanded notice and hearing requirements for every economic development appropriation.  Explicit finding of fact.  All appropriations subject to Local Government Fiscal Control and Budget Act and public disclosure.  Historic rehabilitation explicitly included. Ms. Schrader reported that the City of Wilmington has an economic incentive policy. New Hanover County does not have an economic incentive policy. Discussions have been held about structuring a policy that would look at a threshold for prospective tax revenues and any other sales tax coming to the City or the County in terms of seeing the public value from the incentive. The other part is to review the eligible jobs in the County and how to move the average pay scale forward as there is a desire to see an increase in the average weekly wage. As of the third quarter of 2016, according to the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages (QCEW), the County is 10 percent below the state average weekly wage and 20 percent below the national average weekly wage. Ms. Schrader then reviewed the recommended framework: FROM TO WHY? Requiring a Exceeding ROI threshold for total Several target sectors have low capital minimum capital prospective tax revenues and / or income investment but provide significant # high investment to be received over next 10 years wage jobs Eligible jobs: Eligible Jobs: Increasing average weekly wage by  10% Paid at New Paid 10% above New Hanover County Hanover County average for comparable jobs  average for Wages above level for qualification for comparable jobs entitlement programs Eligible Sectors: Existing Sectors Plus:  Broadens and diversifies tax base   Manufacturing Garner Report Sectors Creates / retains quality value added  (any) Transportation jobs (traded)   Distribution Medical Services Additional sectors leverage existing   HQs assets and have strong wages across Warehousing  spectrum of skills (jobs for all)  R&D (any) Speculative Industrial Bldgs.  Identify Use NAICS codes for Modify: Manufacturing (some) additional clarity and transparency Must involve a Must produce (or supply) goods / services  Traded clusters bring wealth into the facility mostly consumed outside county community vs. just re-circulating  Not eligible if just replacing an existing wealth  existing local business Desire new jobs vs. paying to rehire existing workers NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, MARCH 30, 2017 PAGE 728 Requiring a Requiring minimum of: Increased flexibility retaining existing  minimum of 75 new businesses / jobs New - 25 new qualified jobs qualified jobs  Existing (Any 2 of 3 below): created  $500,000 total economic impact  Minimum capital investment  Create or retain minimum # jobs Flexible incentive Formula based on the number and wages  Incentive amount explicitly tied to calculation of qualified jobs: more, better jobs   Sliding scale; Higher incentive per job Recognizes need for good jobs across for higher wage jobs spectrum of skills and wage levels   10% bonus for Garner Report Sectors Clarity / commitment to growing target sectors  Context for Incentive / Wage Table:  Average Household size in New Hanover County is 2.64 persons.  Majority of entitlement programs eligibility is having an income at or below 200% Federal Poverty Level (FPL):  Recommendation is to set a minimum threshold for a wages to be at 200% FPL for household of 2.64 is $37,339 ($17.95 per hour).  Wages at 200% of the Federal Poverty level is the point at which an individual or family would no longer qualify for benefits from entitlement programs.  In 2017: Household Size: 200% FPL Annual: Implied Hourly Wage*: 1 $23,760 $11.42 2 $32,040 $15.40 3 $40,320 $19.38 4 $48,600 $23.37 5 $56,880 $27.35 * Assuming worked 2.080 hours / year  Retain from Existing Policy:  Elected body discretion:  Also add ability to consider non-conforming projects with significant # of total jobs.  Monitoring and compliance  Broad use of funds (locally):  Training  Site/infrastructure/leasehold/owner occupied land or building improvements and build to suit  Relocation expenses  Machinery and equipment  Loans Regarding the ability to ask businesses and industries what they would like to see in an incentive policy, Ms. Schrader responded that as part of the process the Wilmington Chamber, site selectors, various companies, economic development partners, and City and County staff met multiple times in 2015 to discuss this matter. There was an analysis done of best practices around the country. During the analysis it was found that due to the enabling legislation local governments are not allowed to use some of the best practices. A brief discussion was held about staff working on this matter and the need to provide new education on it rather than a refresher for the governing bodies. In working through this item again, staff needs to find out what companies are looking for in an incentive package and include that as part of the scope of work. County Manager Coudriet reiterated that the City has an incentive policy and the County does not. County staff has a desire to know from the elected bodies perspective if they need to be reinvesting time and energy into this item. The work done two years ago is reflective of the work with and input received from the various groups. By general consensus, the Board agreed to have staff work on developing a realistic and sustainable incentive policy, and for it to conform as much as possible with the City of Wilmington’s incentive policy. Discussion of Long Term Direction of Area Public Transportation (WAVE Transit) City Manager Cheatham reported that in the current year’s budget, City Council included funds for an assessment study about the sustainability of WAVE Transit. He has learned from WAVE Transit Director Albert Eby that WAVE Transit has already undertaken a short term financial assessment as a requirement of developing their five-year plan. City Manager Cheatham requested that the governing bodies consider having a joint long term strategic review of tools and modes to make our public transportation system sustainable for the long term. This would be independent of WAVE Transit’s assessment. In response to questions, City Manager Cheatham confirmed that the $1.9 million short fall was mentioned in WAVE Transit’s short term study. If WAVE Transit continues to receive Federal as well as State funding for capital funds for replacement purposes, it is believed the organization can continue to operate positively over the next NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, MARCH 30, 2017 PAGE 729 three years without asking for additional significant funding from the City and County. The City has budgeted $25,000 for the study and another $25,000 would help make it work. County Manager Coudriet reported that funds are available in the County budget to contribute $25,000 to the study. A brief discussion was held about the County participating in the study. Commissioner Barfield stated that the study is needed to learn what the community needs for the long term and it would help the County determine its level of participation in public transportation. Vice-Chairman Watkins commented that public transportation is a necessity. The study would assist in learning the most optimal model with the cost benefit that can meet as many needs as possible. He supports participating in the study. Commissioner Kusek commented that there is a need to be mindful of the fact that public transportation needs to be provided to the community. However, there is a need to be able to get costs under control for the City and County. Commissioner Zapple stated he would like to see the WAVE Transit short term study whether in draft or final form in order to have more information. City Manager Cheatham reported that he has seen the study in draft form and the independent study being requested today would build on the results of the WAVE Transit study. County Manager Coudriet stated that he and the City Manager cannot commit to the Board exactly when the report will be finalized, prepared and given to the WAVE Board for its review and action. He reported that the draft shows significant operating deficits going forward unless there are Federal funds guaranteed to acquire capital. Chairman White commented that he supports the independent study but there is also a need for the Board to see the WAVE Transit study in its final form. He asked that when developing the proposal for the study, a review be done of whether or not the focus has been more towards rapid expansion and perhaps not enough on what WAVE Transit does really well in its core areas and mission. After additional discussion, the general consensus of the Board is for staff to proceed with the independent study for a long term strategic review of tools and modes to make the public transportation system sustainable for the long term Mayor Saffo commented that he is a strong supporter of public transportation. With the future growth of UNCW and the Community College, this independent study will provide a thorough evaluation of the system to see where improvements can be made. Next Priorities from Garner Study Recommendations City Manager Cheatham stated that City and County staff would like feedback from both governing bodies as to the next set of priorities from the Garner Report that they may want staff review. Each elected official provided input as follows:  Councilmember Sheridan: Item 7: Better Support Small and New Businesses and item 15: Provide the public free high-speed internet access throughout New Hanover County.  Councilmember O’Grady: Item 14: “ReBuild” New Hanover.  Commissioner Barfield: Item 21: Create a cadre of regional ambassadors to extend the region’s brand.  Councilmember Rivenbark: Item 17: Facilitate regional efforts to grow the Talent Pipeline.  Vice-Chairman Watkins: Item 17: Facilitate regional efforts to grow the Talent Pipeline.  Councilmember Anderson: Item 10: Establish an Airframe and Power plant (A&P) certificate program at Cape Fear Community College; Item 11: Develop hangar facilities at ILM to attract MROs and aircraft assembly operations; Item 12: Advocate for the creation of a pharmacy school in the region; and Item 19: Execute a process for lead generation.  Commissioner Zapple: Item 2: Create a three-county micro marketing alliance of New Hanover, Brunswick, and Pender Counties; Item 8: Raise awareness of the economic development process (and returns) among all stakeholder groups; Item 17: Facilitate regional efforts to grow the Talent Pipeline; and add an item: Water and Sewer: what are the plans, where are we headed, particularly in northern part of the County.  Councilmember Lawler: Item 7: Better Support Small and New Businesses; Item 19: Execute a process for lead generation; Item 20: Develop familiarization (FAM) events for consultants and companies; and add an item: Tourism: Southeastern North Carolina needs to look at how various tourism groups can work together to tourism.  Commissioner Kusek: Top priority is economic development: Items 8, 19, 20, and 21 focus on economic development and Item 6: Recruit and help train business leaders to serve in elected office, and to serve on appointed boards and commissions.  Mayor Pro-Tem Haynes: Item 8: Raise awareness of the economic development process (and returns) among all stakeholder groups and Item 15: Provide the public free high-speed internet access throughout New Hanover County.  Mayor Saffo: Item 7: Better Support Small and New Businesses and Item 12: Advocate for the creation of a pharmacy school in the region. Even if not a pharmacy school maybe an engineering school. Mayor Saffo thanked the County for putting the Garner Report together, putting a plan together that everyone can focus on and discuss how to move forward on the recommendations. NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, MARCH 30, 2017 PAGE 730 Chairman White expressed appreciation to County and City staff for their work on the joint meeting. He stated that he wants to continue the joint meetings as it helps to give staff direction and the public confidence of seeing that these elected bodies are working well together. The Garner Report and what has been accomplished so far is proof that these joint meetings are productive. OTHER BUSINESS Commissioner Barfield would like to see a full conversation as a community about Echo Farms. As a tourist community it is a needed conversation as there are only a few of public courses and driving ranges in the area. Some of the driving ranges are going away for a variety of reasons. If one of the few public courses closes it continues to push people to Brunswick County for those type of amenities. It is important to look at what is left of the limited greenspace in the community and figure out how to protect and preserve it. ADJOURNMENT Hearing no further discussion, Chairman White and Mayor Saffo thanked staff for the updates and for those attending the meeting and adjourned at 4:33 p.m. Respectfully submitted, Kymberleigh G. Crowell Clerk to the Board Please note that the above minutes are not a verbatim record of the Special Meeting of the New Hanover County Board of Commissioners.