1993-09-23 Continued Meeting
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MINUTES OF CONTINUED MEETING OF SEPTEMBER 20, 1993
SEPTEMBER 23, 1993
PAGE 721
ASSEMBLY
The New Hanover County Board of Commissioners held a Public
Hearing on Thursday, September 23, 1993, at 7:30 P.M. in the First
Floor Assembly Room of the New Hanover County Administration
Building, 320 Chestnut Street, Wilmington, N. C.
Members present were: Commissioners Sandra Barone; William A.
Caster; William E. Sisson, Jr.; Vice-Chairman E. L. Mathews, Jr.;
Chairman Robert G. Greer; County Manager, Allen O'Neal; County
Attorney, Wanda Copley; and Clerk to the Board, Lucie F. Harrell.
Chairman Greer called the meeting to order and announced the
purpose of the Public Hearing is to hear public comments on whether
New Hanover County should join with other authorized counties in
the creation and organization of the Global TransPark Development
Zone. He requested those making comments to limit their remarks to
three minutes. After the Public Hearing, the continued meeting of
September 20, 1993, will be reconvened in order for the
Commissioners to vote on this issue.
Ms. Estell Lee presented background information on the
formation of the Global TransPark concept. The idea is to have a
manufacturing distribution center built around an international
airport. This would allow North Carolina to remain number one in
the nation in industry recruitment and development. The industrial
park is designed to meet the needs of customers world wide without
investment in excessive inventory. Aft~r evaluating existing
airports, including New Hanover County International Airport, the
Kinston site was chosen because of the land available for
development. The Commissioners were urged to become leaders in
support of the Global TransPark to ensure a healthy economy for
Eastern North Carolina and more importantly for New Hanover County.
Ms. Louise McColl, speaking for Governor Hunt and as a member
of the N. C. Economic Development Board, commented on the
Governor's desire to promote economic development. New Hanover
County will benefit from the industries that will build in
Southeastern North Carolina. The County's investment will create
better jobs and better living standards for our families. The
Martin Administration had a vision, and the Hunt Administration is
going to make it a reality. The Commissioners were urged to
support the TransPark.
Mrs. Marylyn Williams, a member of the New Hanover Committee
for the Global TransPark, stressed the importance of the County
being supportive of regional and state efforts in establishing the
air cargo complex. Current'ly, the N. C. Department of
Transportation is working on plans for Interstate 73, a proposed
highway from Detroit to Charleston, which will have a tremendous
impact on our area. The State Transportation Board is fully
supportive of building highway projects that will improve road
connections to the TransPark. New'Hanover County needs to join the
Zone in order to participate in the planning of new roads, rails
and air infrastructures. Support of -this TransPark will bring
industry and economic developmen~ to New Hanover County.
Mr. Garland Garrett commented on the need for the
Commissioners to support the Global TransPark in order to have
future economic development in Southeastern North Carolina. with
the road improvements scheduled for N. C. Highway 11 in the Spring
of 1994, there will, be a direct route from Kinston to the State
Ports in Wilmington. Leadership and vlsion by the Commissioners
are needed to develop the Global TransPark for the future of
Southeastern North Carolina. ",
Dr. Dan Gottovi commented on the effect of poverty on health
problems and reported death rates from ~ heart disease, cancer,
stroke, and TB in Southeastern North Carolina are among the highest
in the nation and infant mortality rates and immunization rates are
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MINUTES OF CONTINUED MEETING OF .SEPTEMBER 20, 1993
SEPTEMBER 23, 1993
PAGE 722
worse than some developing nations. He urged the Commissioners to
support the Global TransPark in order to promote long term job
growth and raise the standard of living for many in our area.
Mr. Oscar Graham, an education administrator, parent and small
businessman of New Hanover County, urged the Commissioners to
participate in the Global TransPark in order to support future
economic development.
Mr. Bob Warwick, a member of the UNC-W Board of Trustees and
the Committee of 100 Board of Directors, urged the Commissioners to
join the Global TransPark Development Zone, which will benefit New
Hanover County. The County will be a major provider of services
for the TransPark, and business will increase at the state Ports.
New Hanover County is a distribution center, a medical center, an
educational center and a retail center dependent upon residents
throughout the region. All citizens of North Carolina have
invested in New Hanover County in the construction and operation of
1-40, UNC-W and the state Ports. As a primary benefactor of the
Development Zone, we must join the other counties in supporting the
most significant economic development for this area since the
establishment of the state Ports and UNC-W.
Mr. James Scott, Executive Director of the N. C. State Ports
Authority and on behalf of Pat Thomas, Chairman of the SPA Board,
urged the Commissioners to support the Global TransPark . Recruiting
for the development of the TransPark has increased worldwide
awareness of Eastern North Carolina and the State Ports.
Infrastructure improvements will make the Port more competitive
with other larger ports and create more jobs for the shipping
industry and expansion of the Ports facility. The entire region
must support the TransPark for it to be a success.
Mr. John Monroe, Vice-President of the CP&L Eastern Division,
urged the Commissioners to support the Global TransPark, which will
greatly benefit the entire region. New Hanover County currently
provides educational, medical, and retail services for Southeastern
North Carolina, and the Global TransPark will serve as the economic
catalyst for creating jobs in our area as did the Research Triangle
in the Raleigh-Durham-Chapel Hill area. Regionalism is the most
effective way to compete for new industry in today's global
economy. Mr. Sherwood Smith, Chairman and Chief Executive of CP&L,
serves on the Foundation Board of Directors and has committed full
support of CP&L in the current efforts for development of the
TransPark.
Mr. Daniel McComas, a member of the Greater Wilmington Chamber
of Commerce Board of Directors and President of MCO Transport,
urged the Commissioners to endorse the Global TransPark. He
stressed the importance of economic development to the community as
depicted on the County Seal, imports, exports, and industry.
Mr. William Schwartz, Chairman of the New Hanover County
Airport Authority, stated on September 8, 1993, the Airport
Authority adopted a resolution opposing the $5.00 tax on the
ci tizens of New Hanover County for the proposed TransPark in
Kinston. The Authority believes the financial feasibility of the
TransPark for the benefit of New Hanover County has not been
established. Also, the financial investment made by the County for
construction of New Hanover International Airport will not be
enhanced, and the future growth and economic stability of the
Airport could be adversely affected by the diversion of local tax
dollars.
Mr. Schwartz reported that effective February, 1994, the
Airport will collect a $3.00 per ticket passenger facility fee to
support the future growth of the Airport.
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MINUTES OF CONTINUED MEETING OF SEPTEMBER 20, 1993
SEPTEMBER 23, 1993
PAGE 723
Mr. Ronnie Hawes, a resident of the county for thirty years,
expressed opposition to the $5 tax for construction of the Global
TransPark . Although the TransParkmay be a great idea, the
residents of New Hanover County should not be taxed for a complex
that will be 90 miles away.
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Mr. Peter Fensel, Vice-Chairman of the Committee of 100,
reported the Committee of 100 has adopted a resolution of support
for the Global TransPark. The TransPark will be an industrial
complex that will promote regionalism, and New Hanover County needs
to be a partner in this effort to ensure future growth.
Mr. Robert Kemp, Director of the New Hanover International
Airport, requested the Commissioners not to join the Global
TransPark Zone. Over $40 million of public funds have already been
committed to the project by the state. without requesting funds
from other counties, New Hanover County constructed utilities and
other infrastructure improvements at the Airport with over 100
acres now available for development. It is very questionable as to
whether federal funds will be allocated for the complex in Kinston,
and this facility could adversely affect the Airport. The $5.00
tax could be used in lieu of the passenger facility fee for the
construction of a taxiway extension, current debts, or additional
marketing programs, which would be more beneficial to New Hanover
County. Concern was also expressed for the lack of community
support when an application was filed to have the Global TransPark
locate at the County Airport.
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Mr. James N. Browne, a transportation consultant and retired
employee of Piedmont Airlines, urged the Commissioners to be
cautious in joining the TransPark. Althoqgh he supports the idea,
the County should not impose the $5.00 tax to fund the project.
Mr.
another
Hanover
funding
Peyton Ed pitts expressed concern for the impact of
tax with a depressed economy. To tax the citizens of New
County with funds being used in another area is wrong when
is badly needed for schools and many of her County.services.
Mr. Walter Hickey, a resident of New Hanover County, expressed
opposition to the $5.00 tax for support of the Global TransPark.
This project should be supported by private industry, not by county
governments. wi th the current needs 1n New Hanover County for
schools, water and sewer, and beach renourishment projects, these
funds should not be used to support an industry 90 miles away.
Mr. Robert Kendrick, a resident of New Hanover County,
requested the Commissioners not to support this project. Many of
the people speaking in support of the' complex are those
representing the state government. The Commissioners need to talk
with someone who knows about the expenses involved with operating
a cargo plane complex. The cost will be prohibitive. If the
Commissioners support this project, he will protest their being re-
elected. We have a new airport t'e.~minal to support and our money
should not be sent to another county.
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Ms. Elizabeth W. Bland, President of the Greater Wilmington
Chamber of Commerce, reported the Chamber has endorsed the concept
of the Global TransPark in order to continue economical growth for
Southeastern North Carolina.
Mr. Bob Mack, Chairman of the N. C. Ports Advisory Council, (a
group of 40 companies who are major users of the Ports and
producers of goods in North Carolina) stressed the importance of
the state Ports and the shipping industry on the state's economy,
providing 41,000 jobs and contributing $70 million in state and
local taxes. The Ports Advisory Council endorses the regional
concept of the Global TransPark which will benefit the state Ports
and citizens of the county through economic development. Carriers
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MINUTES OF CONTINUED MEETING OF SEPTEMBER 20, 1993
SEPTEMBER 23, 1993
PAGE 724
moving goods throughout the world are very comfortable with the
proposed global complex.
Mr. Richard F. Carter, a resident of New Hanover County,
commented on the Alice in Wonderland concept and wondered if the
cost of operating an air cargo complex has been investigated.
After studying the FAA statistical Book of Aviation and other
printed material, he questioned whether there is a need for such a
complex. Of the 61,226 air tons transported from North Carolina,
2,080 tons are high priority tonnage and 4,932 tons are for
international shipments. He asked how many aircraft will be needed
to run through this system just to pay for the maintenance of the
operation? What will it cost the taxpayer to build and operate this
complex? What are the costs of runway maintenance, electrical
operations and lighting? What class of air cargo is presently
being moved out of the state and what is the percentage of each
class of cargo to be carried through this complex? What kind of
aircraft is needed to make it practical? Have any of the air
carriers committed to using the Global TransPark? The
Commissioners were urged to consider these questions before joining
the TransPark.
Mr. Dana E. Page, a resident of New Hanover County, expressed
concern for increasing taxes to support the complex. The
infrastructure problems of the City of Wilmington will prevent any
benefits derived from the TransPark. The Wilmington Port will be
in competition with the Morehead City Port for shipping business.
The Cape Fear River is too narrow to handle more than one ship at
a time, and a power cable across the channel limits the
maneuverability of ships. New Hanover County should not send money
to Kinston to be used to finance infrastructure projects for small
counties. The Commissioners were urged to oppose joining the
Global TransPark Zone.
Senator Luther Jordan, serving New Hanover County and Lenoir
County, encouraged support of the Global TransPark because this
project will improve the economic condition of the rural counties
in the Kinston area. The Global TransPark will belong to the
people of North Carolina, like the state Ports; therefore, it
should be completely funded by the state not the counties. He
apologized for placing the Commissioners in this situation.
Chairman Greer requested the Global TransPark Committee to
address the questions asked by the public and to present any new
information.
Mr. Kit Austin, reported the Global TransPark is supported by
Governor Hunt and former Governor Jim Martin. Twelve counties have
approved the $5.00 vehicle tax and will participate in the Global
TransPark Zone. This complex will greatly benefit the State Ports
and other businesses in New Hanover County. The money collected
will go into a revolving loan fund with members of the Zone using
the money for infrastructure improvements. If the TransPark is
terminated, the funds will be returned to the counties.
Ms. Sherri Burnell, a resident of New Hanover County asked the
following questions: (1) What will the rate of interest be on funds
borrowed from the Trust Fund? (2) will the Cape Fear River channel
accommodate all types of ships? (3) How will the roads leading into
the port be improved to handle the increased number of trucks? (4)
What jobs will be created? (5) will the educational system prepare
our children to perform the proposed high tech jobs? (6) How can we
prepare for future growth when there are so many current problems,
such as over crowded schools and traffic congestion on College
Road? and (7) Is there a need for an air cargo complex when our
airport is under utilized?
Mr. Garrett reported traffic problems will be alleviated with
the construction of the Northern Outer Loop and smith Creek
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MINUTES OF CONTINUED MEETING OF SEPTEMBER 20, 1993
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PAGE 725
Parkway. Also, the Southern Outer Loop will alleviate some of the
traffic on College Road.
Senator Henson P. Barnes, Vice-Chairman of the N. C. Board of
Transportation and a major supporter of the Global TransPark,
reported the money raised from the $5.00 vehicle tax will be placed
in a trust fund to be loaned to counties in the Global TransPark
Development Zone to finance their infrastructure improvements.
Although local governments will give $20 million, private industry
will contribute $30 million and the State will continue to support
the complex by building the needed infrastructure. A feasibility
study substantiated that the complex will work and provide growth
for Southeastern North Carolina.
Mr. Carter inquired as to how removing $14-15 million dollars
cash flow from this small county can be justified?
Senator Barnes answered the investment by the County would
improve jobs and salaries for the people east of Raleigh.
Mr. Kendrick inquired as to why the Wilmington area has been
treated unfairly by the State in building roads and bridges?
Mr. Garrett reported that $300 million was spent to build 1-40
and that both Governor Hunt and Governor Martin have worked hard to
improve the infrastructure in Eastern North Carolina.
Senator Barnes replied that 60% of the Highway Trust Funds
have been spent for roads east of Raleigh since 1989.
Mr. Carter asked if the Environmental Impact Statement has
been approved?
Senator Barnes reported the Environmental Impact Statement
cannot be approved until all of the Master Plan is in place. The
location of the airport has been approved.
Mr. R. J. Davis expressed concern for taxing the residents of
New Hanover County at the same rate as the counties closer to the
Kinston area and stated that this should be a state issue.
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Senator Barnes reported the state will be spending a
tremendous amount of money in support of this project including $72
million in building the main runway. He stressed the importance of
this region working together and invited New Hanover County to join
the other 12 counties in this indtistrialiied partnership.
Chairman Greer closed the Public Hearing and expressed
appreciation to all who provided" input.
Chairman Greer inquired as to how counties were chosen to be
a part of this Zone, and who will determine how long the tax will
be assessed? -
Senator Barnes answered that only counties who forwarded
resolutions to the State expressing an interest in joining the
TransPark were included in the legislation; however, New Hanover
County wrote a letter to the State asking for an opportunity to
decide later. Lenoir, Wayne, Wilson, Nash, Edgecombe, Pitt, Jones,
Craven, Carteret, and Duplin have joined the Zone. The Commission
will decide on the number of years to collect the special tax;
however, the enabling legislation allows one to five years. Each
participating county appoints 3. members to the Commission and
appointments are made by the University System, the Community
College System and the State Ports Authority. The Air Cargo
Airport Authority can appoint 3-7 members.
Chairman Greer inquired as to the status of the improvements
to Highway 11?
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SEPTEMBER 23, 1993
PAGE 726
Mr. Garrett stated Highway 11 will be a four-lane road from
Kenansville to Pink Hill at a cost of $30 million and Highway 70
will be improved from Pink Hill to Kinston at a cost of $27
million.
commissioner Caster inquired as to whether the County can opt
out after one year and how long will the tax be imposed?
Senator Barnes answered that in the original legislation when
using the sales tax as a means of taxation, the County could
withdraw at the end of a fiscal year, but if the County had
borrowed money from the Zone, the tax could still be imposed.
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Mr. Nathan Skipper, an attorney with the Ward smith Law Firm
representing the Global TransPark Commission, explained that when
a county withdraws from the Zone the tax will be collected until
the end of that fiscal year. Only members of the Zone are assessed
the tax.
commissioner Caster inquired as to the exact status of the
complex, and if North Carolina is in competition with other states
for this type of complex?
Senator Barnes reported the location and the cost of building
the airport have been determined; however, FAA will determine the
percentage they will fund and the State will fund the difference.
A key factor in FAA's decision is the importance of an airport
complex to the Department of Defense. North Carolina is in the
lead with the plans and legislation. If the State receives FAA
funding of 40-90%, other states within a 600 mile radius will be
excluded from FAA funding.
commissioner Caster inquired as to whether Highway 11 will be
improved if the Global TransPark is constructed?
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Mr. Garrett replied the road will be constructed.
commissioner Caster inquired as to why the State is not
totally supporting the Global TransPark as they have done for UNC-W
and the State Ports?
Senator Barnes reported the TransPark is a state, private
industry, and local governments partnership. Local governments are
contributing the least amount.
commissioner Caster questioned how the Zone will help New
Hanover County with funding of infrastructure projects when those
needs far outweigh the funds that will be available from the Global
TransPark Zone. Also, concern was expressed for development and
location of industry in the Kinston area, not 89 miles away in New
Hanover County.
Senator Barnes reported that twelve counties working together
will have more influence in securing support for this project. The
TransPark will benefit the entire region.
commissioner Caster requested Airport Director, Bob Kemp, to
report on the amount of FAA funds received by New Hanover County.
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Airport Director Kemp reported the County received 90% funding
from FAA for capital projects at the Airport; however, he has been
informed that less discretionary funds will be available in the
future.
commissioner Barone inquired about the status of the railroads
and if more land acquisitions would be needed?
Mr. Garrett reported that CSX will be giving the State the
rights-of-way for the corridor from Castle Hayne to Wallace, which
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MINUTES OF CONTINUED MEETING OF SEPTEMBER 20, 1993
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PAGE 727
will be a major rail along Highway 117 to the Global TransPark
Development Zone.
BREAK
Chairman Greer called a break from 9:30 P.M. until 9:40 P.M.
commissioner Barone commented on the importance of retaining
the rail corridor in order to move large amounts of freight between
the Port and the TransPark. She requested the State Ports Director
to explain how the Port plans to alleviate the problem with the
channel not being deep enough to allow large cargo ships to come
through the Cape Fear River at low tide?
Mr. Scott reported that the U. S. House of Representatives has
appropriated funds for the design project of deepening the
Wilmington bar project and dredging. Approval by the Senate is
pending. Federal funding should be $5,400,000, State funding will
be $1,062,000 and the Ports Authority will fund $1,400,000. The
project will be up for bid in April with award of the contract in
May with dredging beginning in July, 1994. The following year, $12
million will be needed from State funds and $28 million from
Federal funds to take the bar down to a minimum of 41 feet. The
total project will cost $50 million.
commissioner Sisson inquired as to the status of the
Feasibility Study?
Senator Barnes reported the Feasibility Study has not been re-
examined but a Committee has been appointed to study parts of the
original study. The first phase of the study pertains to the
location of the runway and has .been completed. The second phase,
pertaining to the location of 'the industrial park around the
runway, will be completed within the next few weeks. The
environmental part of the study will be completed this winter.
commissioner Sisson reported in the. summary of the
Environmental Impact Report there is no reference to examining the
impact of flight paths, noise, and pollution of air traffic on the
surrounding areas. He inquired as to whether these items will be
addressed in the Environmental I~pact Study?
Senator Barnes reported the Governor's committee will provide
recommendations on environmental matters that ~ill be included in
the final report.. .
commissioner Sisson reported New Hanover County will
contribute approximately $500,000 per year to the Zone and inquired
as to the average debt service of the counties involved?
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Senator Barnes reported that he is not aware of the debt
service for the counties.
commissioner Sisson expressed concern for the County
committing funds to support this~roject without considering other
commi tments such .as the debt for the incinerator, a recently
approved industrial pollution control bond, a 'possible $40 million
bond issue for the school boa~d, state bonds for the community
colleges and the university'system, and the cost of cleaning up the
Airport Burn pit site. The County is encumbered heavily to pay for
the cost of growth,. in New Hanover County. Although Lenoir County
may be an excellent location fc;:>ri' this type of. complex , it is more
connected and related to the Greenville area than to Wilmington and
the regional growth will be more in that direction. Another
concern is that air transportation is the most energy cost
sensitive mode and problems ,could arise if there was another energy
crunch.
Vice-Chairman Mathews asked if the County can join the Zone at
a later date? ~
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PAGE 72.Q
Senator Barnes stated the Commission will have committed to
certain resources and made appointments to the various committees.
New Hanover County is the leading county in the region; therefore,
it would be most beneficial to the Zone for the County to join.
After the initial invitation, legislative approval would be
required before New Hanover County could join.
Chairman Greer expressed appreciation to all persons attending
and presenting comments. Concern was expressed for New Hanover
County having to make this decision and each Commissioner was
requested to vote on what he or she feels is best for the County.
As to representatives from the State, Chamber of Commerce,
Committee of 100, and Ports Authority, their opinions are highly
valued. Although, he is a conservative and hates to spend money,
he feels joining this regional concept could be very important to
New Hanover County.
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Chairman Greer called for a motion.
Motion: Vice-Chairman Mathews stated he believes in the concept of
the Global TransPark but does not feel the public has been properly
informed about the concept and MOVED to defer action for one year
at which time the Board should reconsider joining the TransPark
Development Zone. This item should be considered at the first
meeting in September 1994. THE MOTION FAILED DUE TO NOT RECEIVING
A SECOND.
Motion: commissioner Sisson MOVED, SECONDED by Commissioner
Caster, to decline the invitation to join the Global TransPark
Development Zone and not to impose the proposed vehicle tax on the
citizens of New Hanover County.
Substitute Motion: commissioner Barone MOVED, SECONDED by Chairman
Greer, to join the Global TransPark Development Zone for one year
and to reconsider whether to continue as a member at the end of the
first year. Upon vote, the MOTION CARRIED AS FOLLOWS:
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Voting Aye:
Chairman Greer
Vice-Chairman Mathews
Commissioner Barone
voting Nay:
commissioner Sisson
commissioner Caster
ADJOURNMENT
There being no further business, Chairman Greer adjourned the
meeting at 9:55 P.M.
Respectfully submitted,
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Lucie F. Harrell
Clerk to the Board
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