Investment Studies

Leak-Goforth Company Study

Three drivers prompted the Leak-Goforth Company Study:

Need to diversify and expand the tax bases of the three towns, which have become bedroom communities
Need to expand job opportunities for residents (many commuters)
Need to upgrade local jobs that are predominantly lower wage retail and service occupations

The Leak-Goforth team said "particular attention should focus on the needs of businesses and industries which serve external markets, rather than needs generated by the local population and other business activities in the area. True economic development involves the attraction and retention of firms which help drive the local economy, not depend on it."

The team suggested identifying and planning for a diverse range of economic development location sizes, types and costs throughout North Mecklenburg with the goal of reaching a broader market. This includes making locations available for image-conscious developers looking for high visibility and other businesses searching for less expensive options.

Three Development Types Suggested:

Industrial Parks & Sites (four potential locations proposed)
Office Parks and large free-standing sites (six potential locations identified)
Business Parks (three potential locations proposed)
Transit-Oriented Development (five locations & lone alternative noted)

Supporting Information from the 2006 UNC Charlotte Urban Institute Study

Actual and Projected North Mecklenburg
Town Population (2000-2030)

	2000 (Actual)	2010	2020	2030
Cornelius	14,439	22,990	30,748	37,529
Davidson	7,424	11,775	17,082	21,775
Huntersville	27,801	52,756	78,519	100,796
North Mecklenburg Total	49,664	87,521	126,349	160,100

Source: RLUTA, 2005

Jurisdiction	Tax Revenuue Split Residental %	Tax Revenuue Split Business %
Cornelius	83	17
Mint Hill	83	17
Davidson	82	18
Chapel Hill	80	20
Huntersville	76	24
Cary	73	27
Fort Mill (SC)	70	30
Gastonia	66	34
Matthews	66	34
Mecklenburg Country	66	34
Charlotte	64	36
Concord	58	42
Mooresville	57	43
Statesville	52	48

Source: City and County Tax Offices, 2006

Land needs (based on market projections):

Approximately 250,000 square feet per year for industrial space
Approximately 225,000 square feet per year for office space

Marketing Focus Suggested:

Corporate Offices
Light Industry
University Research Park Overflow
NASCAR
Lowes Corp. suppliers/service firms interested in being closer to the Mooresville headquarters

The Leak-Goforth team also suggested the formation of a nonprofit economic development corporation to promote, facilitate and coordinate economic development activities. According to the study, “economic development is a comprehensive and ongoing process requiring diligent attention to and expertise in dealing with a variety of internal and external factors, all of which combine to enable a community to achieve economic growth and vitality.”

UNC Charlotte Urban Institute Study

Study pointed out the following North Mecklenburg Problems:

Towns have a heavy and increasing dependence on residential tax base.
Research and experience suggest that on average, residential units do not pay for themselves.
The demand for housing in North Mecklenburg is escalating.
The increasing dependence on a residential tax base will lead to increasing property taxes and/or searching for new revenue sources.

Supporting Information:

North Mecklenburg County Population (1990-2030)

Conclusions from UNC Charlotte Urban Institute Study:

Success depends on the continued collaboration of the three towns.
Aggressive action is needed to reserve space for commercial development because of the escalating demand for residential.
Many of the potential sites for commercial development are in the N.C. 115 / proposed rail line corridor. The towns should collaborate on a joint development plan for the N.C. 115 / railroad corridor as an adjunct to the CATS-generated corridor plan.
Each town council should review the list of possible sites for its jurisdiction and prioritize. These priorities should be shared and discussed among the three towns.
A concerted effort needs to be made to position North Mecklenburg as an alternative office location for the region.
Towns may want to persuade their municipal and county colleagues to undertake a long-term infrastructure needs study using the Wake County model.
Each individual town and the three towns collectively should set goals for an appropriate mix of residential and commercial components of the tax base.
Goals regarding the mix of commercial uses in components of the tax base should also be included: office, light industry, retail, business park, distribution, flex space, etc.

Major Achievements Since the Leak-Goforth Study:

Establishment of Lake Norman Regional Economic Development Corporation (LNREDC)
Collaboration among the three towns on the Prairie Packaging project
The Exit 30 Office Park (Harbour Place)
Sites identified in Leak-Goforth study have not been compromised and some sites have been protected.

Solution:
Be proactive. Invest in industrial park development to increase the industrial tax base and diversify the region’s economy beyond residential/commercial development.

Mission Statement

Mission Statement

To develop and implement an economic development strategy for the towns of Cornelius, Davidson, Huntersville and the Lake Norman region that results in:

An expanded tax base
Improved quality of life for the region’s residents through the creation of new, highly skilled jobs

Goals

Expansion of existing business and industry
Opportunities for and encouragement of investment by new business and industry
A spirit of cooperation between business, government, schools and the community

Investors

Investor List

LNREDC Focus Areas

Product Development

Maintain database on available buildings & sites.
Serve as consultant for Lake Norman region industrial park(s),
Assist landowners with State Certified Industrial Site Program.
Coordinate management group for North Mecklenburg Industrial Park & assess other business park opportunities.

Lake Norman Region Industrial & Office Parks

North Mecklenburg Industrial Park (jointly owned by Town of Cornelius, Town of Davidson & Town of Huntersville)
Bailey Commerce Park – Cornelius
Harbour Place – Davidson
The Park – Huntersville
Bryton – 2009 sites
Village at Lake Norman - Cornelius

Retention & Expansion

LNREDC is developing an existing industry program to ensure that industry needs are understood and being addressed starting with creation of an industry listing and contact program.
The focus of a new existing industry program is to encourage existing industry to stay in the Lake Norman region and to expand.

LAKE NORMAN REGIONAL ECONOMIC DEVELOPMENT CORPORATION

Investor Relations Collaborate in the community to foster public and private support for Lake Norman Region economic development by raising local awareness of the need for and fiscal and economic benefits of economic development.

Communication & Networking/Community Involvement

Work with industry, government, schools, community leaders and the public to advocate for industry, expand existing industry, encourage new industry, and enhance the standard of living in the Lake Norman Region.

Recruiting & Marketing

Globally market Lake Norman Region to potential investors.
Provide the latest information to companies and consultants.
Participate in regional & state trade & marketing economic development events.
Serve as single point of contact for state & regional industrial prospects.
Provide customized information to potential new companies.
Assist in providing industry incentives.
Conduct visits with national

LNREDC Accomplishments

Lake Norman Region Industrial Parks

North Mecklenburg Industrial Park
Bailey Commerce Park – Cornelius
Harbour Place – Davidson
The Park – Huntersville
Bryton – 2009 sites
Village at Lake Norman - Cornelius

Investor Participation

25 private investors to date

New & Existing Industry Growth

Microban – Global headquarters for leader in built-in antimicrobial products

$8 million expansion
45 new jobs

Prairie Packaging – Manufacturing facility for plastic cups, plates, straws & cutlery

New industry at North Mecklenburg Industrial Park – 240 new jobs
$48 million total industry/equipment investment expected

Rubbermaid Food Service Products – Headquarters facility

$7.55 million project – new division headquarters building
320 new jobs over five years (in addition to the 387 existing positions)

Rubbermaid Home Products – Headquarters facility

$5.85 million project - new division headquarters building
80 new jobs

Marketing

New LNREDC website underway
New brochure developed
Advertising placed in local and regional publications

Existing Industry

Assisted local industry with legislative contacts and introduction of new bill to maintain manufacturing tax status.
Developing new program to establish regular communication with existing industry.