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Concentrated in the three EDDs, the area available for commercial development land is less than 2,100
<br />acres —which is further reduced by current regulations requiring a portion of the EDDs to be set aside for
<br />non - commercial use, including buffers. Moreover, at present, most of this acreage remains undeveloped
<br />and thus, ineligible for the majority of site selection short lists.
<br />As rooted by Frank Clifton, Orange County Manager, in his 10 September 2009 report to the BOCC,
<br />`S,ithin Orange County, economic development has a differing meaning than elsewhere in North
<br />Carolina. [Orange County's,( land use regulations, utility extension policies and a variety of other issues
<br />impact `traditional' economic development [much differently than] elsewhere." In addition to
<br />disregarding standard economic development policies and practices, Orange County has expected the
<br />economic development market --site selection specialists, business investors, and local property
<br />owners —to adapt to Orange County preferences rather than Orange County adapting to market demand.
<br />Many businesses that Orange County would like to attract cannot justify selecting Orange County over
<br />other nearby locations whose attributes, such as labor, proximity to universities/RTP, and quality of life,
<br />are considered comparable, but whose turn -key development costs are lower while property taxes and
<br />land costs are higher. As a result, County residents bear the highest tax burden in the region and almost
<br />half our adult residents leave the Comity both for employment and routine commercial transactions.
<br />Facing Our Challenges
<br />This past year saw two economic development milestones highlighting the strength of economic
<br />opportunity in our region — record - breaking new private investment in our region and record - breaking
<br />research funding awarded to UNC. These gains were achieved even as the country and much of the world
<br />remained mired in the Great Recession. In contrast, Orange County, experienced no private investment
<br />growth, net job loss in 2009, and negative budgetary pressures that are not expected to improve in the
<br />near future--despite having one of the state's highest per capita income, being one of the country's top 10
<br />centers for start -up business, and being home both to one of the region's anchor research universities and
<br />to 13% of the region's population.
<br />Three pressures have long weakened Orange County's ability to increase its commercial tax base as wel
<br />as to attract and retain private commercial investment. These pressures include an escalation in
<br />residential building, an escalation of office space lease /purchase costs over that readily available in
<br />neighboring counties, and continued under - development of site -ready buildable acreage. Concurrently,
<br />the gap between Orange County's economic development policies and its sister counties continues to
<br />increase in four critical categories that drive business decision - making, including availability of business-
<br />and shovel -ready locations, regulatory timelines, access to capital, and incentives. As a result, our county
<br />has been unable to actively participate in the commercial market development that is abundant in the
<br />region, especially within the urban core.
<br />In the past, when County coffers were flush and residential tax burdens were less of an issue, the lack of
<br />private- investment and commercial development was the preferred status quo by many. Moreover, many
<br />middle and upper income residents have benefited from the availability of tenured employment offered
<br />through the academic and govermnent sectors, while lower income residents have been able to county on
<br />some of the areas strongest social service networks. However, with the Great Recession affecting both
<br />public and private employers, Orange County residents are feeling the pinch that comes from living in a
<br />county that has designed itself as a bedroom community with few fall -back options for revenue,
<br />employment, or wealth generation available through private investment and commercial development
<br />Fiscal Considerations and Realities
<br />The relatively new status quo for Orange County govermnent is a County which finds itself facing
<br />financial short-falls for the foreseeable future, while also facing community pressure for maintaining high
<br />standards in service delivery, even as the cost —and volume—of delivery rises. Residential property
<br />owners in Orange County continue to bear the brunt of this financial burden, with local property tax rates
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