Gentlemen (Dear Commissioners, March 20, 2012) | Eastern North Carolina Now

   Publisher's note: Beaufort County's version of Rick Santelli, Warren Smith, offered his estimable opinion to myself, the media, and all other interested parties, of the wonderful promotional exercise, performed by Beaufort County Economic Developer Tom Thompson, before the Beaufort County Board of County Commissioners at their Special Called Meeting, Monday, March 19, 2012. There is a certain thread of truth in Mr. Smith's impromptu late night rant, to all of the aforementioned parties, set in the context of a superior purpose.

   And just what is "a superior purpose?"

   It is taking real information, and making the wisest decision possible. This is actually what county commissioners are charged to do. It remains to be seen as to whether that will occur.

Gentlemen,

    I enjoyed the slide show, but I missed the annual report. Was there an actual report concerning the specifics of 2011....or correcting the errors of last year's report?

    The slide show began in the 2001 and continued forward to the present day. There was great discussion regarding the manner in which profit motivated entreprenuers snapped up EDC property at the bottom of the 2002 recession at cheap prices but then avoided the real estate projects the EDC undertook during the boom of 2007....which we still own.

    I did not notice any new grants being awarded during the recession of 2008/2011 when they were actually most needed.

    As has been often stated, Beaufort County's economy runs in lock step with the state and region. When the regional economy is good the local economy responds. Mr. Thompson's graphs made this point quite clear. Mr. Thompson mentioned that 5300 jobs have been lost to NAFTA et al and he wants to claim that he has brought 900 jobs to the county during the last 10 years....yet unemployment over the last 10 years has remained in its traditional range.....in other words the Beaufort County economy has regenerated 4500 jobs through the free market despite the fact that we have locked $6.5 million in empty real estate and sent $1.5 million to Craven County with Mr. Thompson.

    It was interesting that there are many, many new spec buildings through out eastern NC...Mr.Thompson sees this glut of property as confirmation of his judgement on QSII. I suggest it is a better indicator of just how much empty real estate is hanging over the market.

    We were told of the dozens of projects which were not brought to fruition..."the ones that got away".... and thankfully ethanol, plastics and diamonds seem to have been passing fads and are no longer being persued by the EDC.

    On a personal note, Dot Moat criticized my expressing an opinion on EDC in light of my being a taxpayer and resident of Beaufort County since only 2005. Strangely she does not see it as at all strange that Mr. Thompson is running the EDC and is not even a resident of Beaufort County....charming naivete.

Regards,
Warren Smith


    Mr. Thompson refers to the 5300 Beaufort County jobs lost to NAFTA.

    It is worth noting that in 2007 there were more people employed in Beaufort County that at any other time and the unemployment rate was at a decades long low point.

    In other words, by 2007 the entire job loss due to NAFTA had been corrected by free market forces creating new businesses and new jobs. As the regional and national economies shrank and expanded the local economy followed..."with or without the EDC industrial park strategy."

    Look at the chart of unemployment in Beaufort County. It ranges between 5% in good times running up to 12% in times of economic distress. It is strongly cylcic.

    Success lies in buying assets and property and starting new business ventures when the economy is weak and unemployment is above 10% and then riding the strengthening economy until it overheats in the area near 5% unemployment. At that point entreprenuers should reduce business exposure and liquidate assets. Invariably the economy and the market turn for the worse at these times and near levels of 5% unemployment.

    Sadly, Mr. Thompson has done just the reverse. He sold and leased real estate to Impressions, CamfillFarr and PAS at the very bottom of the 2002 recession and through the early stages of the recovery when unemployment was in the upper levels of its historical range, then Mr.Thompson began a process of real estate accummulation and development during the boom of 2006/2007 when unemployment was near 5%. Almost immediately the market collapsed.

    This is a classic buy high and sell low strategy. It is a tragedy that this was allowed to happen. No planning. No risk management. No exit strategy. Absolutely no sense of Beaufort County's economic history.

    Now Mr.Thompson is stuck with QSII and begging for buyers who have dozens, if not scores, of other spec buildings which are hanging on the market.

    We have lost the use of these funds for five difficult years, seen the values of the assets fall, foregone opportunities to save the hospital, build a jail, help the Turnage and fund many needy programs along Main St and in our neighborhoods.

    This has not been economic development. It has been a joke. Tonight was nothing more than a "dog and pony" show put on by a remarkably inept analyst.

Regards,
Warren Smith