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22 <br />12 County and Municipal Government in North Carolina <br />Table 26-1. Characteristics of Organizational Structures for Economic Development <br />Characteristic Line Department Economic <br />Development <br />Commission Dependent <br />Nonprofit Independent <br />Nonprofit <br />Organizational Powers <br />Own property Yes No Yes Yes <br />Develop industrial park Yes No Yes Yes <br />Construct shell building Yes No Yes Yes <br />Borrow money Yes No Yes Yes <br />Guarantee private {oans No No Probably no Yes <br />Finance and Taxation <br />Subject to Budget/Fiscal <br />Control Act Yes Yes No No <br />Income tax status Exempt Exempt Exempt Exempt <br />Contributions deductible Yes Yes !f 501(c)(3) if 501(c)(3) <br />Property tax status Facempt Exempt Taxable Taxable <br />Procedural Issues <br />Subject to open meetings/ <br />public records laws Yes Yes Yes No <br />Follow G.S.158.7.1 Yes N/A No No <br />Policy Coordination/Control <br />Policy coordination High Medium Medium Low <br />Financial control Appropriation Appropriation Contract Contract <br />Employee Benefits Public Public Private Private <br />Private Sector Involvement Low Medium Medium High <br />Examples Anson County; <br />Washington <br />County; Charlotte, <br />Wilmington Bladen County <br />EDC; <br />Sampson County <br />EDC; Stanly <br />Gounty EDC Cartere# County <br />EDC; Catawba <br />County EDC; High <br />Point EDC Alamance County <br />Chamber; <br />Henderson County <br />ED Partnership; <br />Greater Raleigh <br />Chamber <br />Source: Adapted from David Lawrence, Economic Development Law for North Carolina Local <br />Governments. Chapel Hill, N.C.: Institute of Government, The University of North Carolina at <br />Chapel Hill, 2000. <br />4. Balancing the tax base. Several counties and cities in North Cazolina have experienced rapid population <br />growth and have seen an increase ul residential development as a result. Indeed many "bedroom" <br />communities are taking shape across the state. Local governments must figure out how to pay for the <br />additional public services,that growth requires. The problem is that residential development does not tend <br />to generate sufficient tax revenue to fund expanded public services. By contrast, industrial and commercial <br />development usually more than pays for itself in terms of the ratio of tax revenues to the cost of public <br />services. Therefore, as communities grow, they should pay attention to diversification, or the Lack thereof, in <br />the tax base. <br />® 2007 UNC--Chapel Hill School of Government. Do not duplicate. <br />