"Letter to the Commissioners," March 5, 2012 | Eastern North Carolina Now

    Publisher's note: Below is solid citizen, Warren Smith's ongoing, and well stated, "Letter to the Commissioner." We agree: At some point, Beaufort County needs to remedy its Economic Development mess, then North Carolina needs to tend to its mess as well.

Beaufort County Commissioners
121. W. Third Street
Washington, NC 27889

Dear Commissioners:

   It is rumored that the property initially earmarked for the incentive land grant to P&G/A&E Manufacturing has not qualified for the state funded sewer grant necessary to improve the property for the construction of A&E’s 50,000 sq. ft. building. This has supposedly required that the county substitute a more attractive and more valuable site within the Washington Industrial Park, a site already outfitted with sewer, in order to allow A&E to begin construction of its building in a timely fashion.

    If the above is true, then what other changes in the value of the grant, the size of the acreage or the other terms of the grant are in the works? Was A&E re-offered the Quick Start II building, as opposed to a new green-field site? Did they refuse QSII for a second time? Is there any feed back on why buyers are so reluctant to purchase QSII?

    It seems that the insufficiencies in the overall business model of the industrial park persist. It looks as if we are culling the better sites, while being left with the least desirable properties. Is it supposed to work this way?

    On a second topic, the last performance report from the Economic Development Commission was as of July 20, 2010. It was subject to many errors and demonstrated little knowledge of basic accounting principles. Even this shoddy effort is now eighteen months old and the delay may well raise questions in regard to North Carolina General Statute 158-8.5 (note: attached below).

    Much of dissatisfaction with the Economic Development Commission's reporting could be solved if it were to become more public and fact based as opposed to following its current policy of secrecy and undocumented reporting.

    The EDC maintains a website that is linked to the Beaufort County government website. This site could be used to post quarterly performance reports. These reports should comply not only with the outline of NCGS 158-8.5, but should also discuss:
   
    • research concerning the project being funded and the client firm under consideration,
    • grants applied for and grant dollars actually collected from donor groups,
    • jobs retained and, separately, new jobs actually created as part of the underlying grant,
    • salary and benefit levels at the client firms before and after the grant,
    • NC Employment Security Commission documentation supporting these postings
    • The offered price of all real estate at the industrial parks.

If you gentlemen are going to, once again, hike taxes to make room in the budget for this program, then the EDC should be required to shed some light on the process.

    Regards,
    Warren Smith
    Beaufort County, NC


    § 158-8.5. Annual reporting requirement.

    By February 15 of each year, the commissions created pursuant to G.S. 158-8.1, 158-8.2, 158-8.3, and 158-33 shall publish a report containing the information required by this section. As a condition on the receipt of State funds, the Charlotte Regional Partnership, Inc., the Piedmont Triad Regional Partnership, and the Research Triangle Regional Partnership shall, by February 15 of each year, publish a report containing the information required by this section. The commissions and partnerships shall also submit a copy of the report to the Department of Commerce, the Office of State Budget and Management, the Joint Legislative Commission on Governmental Operations, the Joint Legislative Economic Development Oversight Committee, and the Fiscal Research Division of the General Assembly. The report shall include all of the following:

    (1) A summary of the preceding year's program activities, objectives, and accomplishments.
    (2) The preceding fiscal year's itemized expenditures and fund sources. Itemized expenditures shall be reported separately for each fund source.
    (3) A demonstration of how the commission's or partnership's regional economic development and marketing strategy aligns with the State's overall economic development and marketing strategies.
    (4) A demonstration of how the commission's or partnership's involvement in promotion activities has generated leads.
    (5) The most recent audited annual financial statement regarding State funds.
    (6) A demonstration of the commission's efforts to obtain funds from local, private, and federal sources. (2006-263, s. 1; 2007-323, s. 13.7(g).)