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1993-09-23 Continued Meeting . . . '""'lllll 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 ~ I I 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. ! l o () () "'}, l\ ~,. ~ 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. . 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. . 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. . 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 ~ ( ! 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 l () o () . . . /'" " '""'llllIl '.t<~"~i.): MINUTES OF CONTINUED MEETING OF SEPTEMBER 20, 1993 SEPTEMBER 23, 1993 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. '. 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? ~ .MI.NUTES OF CONTINUED MEETING OF SEPTEMBER 20, 1993 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. () 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? () 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. () 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 . . . ~ j.c:<. MINUTES OF CONTINUED MEETING OF SEPTEMBER 20, 1993 SEPTEMBER 23, 1993 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? . ',f 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? ~ ~ (/~~ , MINUTES OF CONTINUED MEETING OF SEPTEMBER 20, 1993 SEPTEMBER 23, 1993 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. () 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: () 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, ~V~ Lucie F. Harrell Clerk to the Board ()