Agenda - 05-18-2010 - 8b - Laserfiche WebLink

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Firm Recruitment and Retention Programs Many of the North Carolina site selection cases involved tax and other financial incentives (Bruns, 2009). Regionally, most counties have historically provided financial incentive to relocating firms (Starner, 2008). However, it should be noted that the bulk of economic development programs are not cash incentives. Statewide, the community college system offers specialized training programs to any firm requiring an unoffered training program (Bruns, 2009). The Job Link program provides job matching services. Furthermore, networks of small business development centers as well as non - profit Community Development Finance Institutions provide support for small to medium sized firms, as well as start up businesses. Regionally, numerous small business incubators and research centers promote entrepreneurship and small firm success. Recruitment -wise, both the regional economic development partnerships and the NC Department of Commerce actively provide consulting services for those seeking real estate. Orange County: Challenges Orange County has not been especially successful in attracting firms to the county, having only created 12 announced jobs in 2008 (NC Commerce, 2009). While the region is thriving, and residents can find employment in nearby counties, the lack of business growth is straining the County's tax coffers. As of August 2009, 42% or working residents work outside Orange County. This is a high number, compared to 27% and 18% for Durham and Wake Counties, respectively (NC Commerce, 2009). The resulting higher tax rates deter development, which causes tax rates to increase. Furthermore, the high tax rates and cost of living deter many of the low skilled workers to live outside the county. The following challenges contribute to this cycle of an increasing jobs- housing imbalance, meaning that an increasing number of Orange County residents and workers are not able to live near their place of work. These challenges are not insurmountable, however, as potential strategies for overcoming them is detailed in this report.. Competition with Nearby Counties Orange County is part of the core metro counties of the Research Triangle Region, but is unique to the region. While the county has a major research university and is in close proximity to the Research Triangle Park, Orange County has not seen the same job growth or level of high tech development of Wake or Durharn County (Orange County, 2009) Furthermore, Orange County has a lower population and much of the county is rural. Rural land costs more to develop due to lower population densities and higher cost of infrastructure development (Luger, 2003). Thus, while the Orange County has of the characteristics of a metro core, they have not seen the same benefits. This range of site characteristics can be seen in the wide range of prices of available land listed on the Department of Commerce, with a range of $6,300 to $175,500, with lower priced land in the more rural parts of the county. Currently, industrial land along I -40 depleting and Orange County stands to gain as demand remains fairly steady (Perry, correspondence, September 2009). Orange County has fewer sites listed as available, and