Orange County NC Website
Browse       Search
- . - <br /> .t <br /> t <br /> MEMORANDUM <br /> TO: Board rembers <br /> FROM: County' Manager <br /> DATE: OctobJr 4, 1982 <br /> . ' RE: Critique of Models and Outline of Issues Pertaining to the Establishment <br /> of an Economic Development Program <br /> This memorandum will set forth the legal background, financial aspects <br /> and other isues concerning an economic development program. <br /> The Board has been presented with four organizational models for an <br /> adminiotrat1 e structure. These will be commented on in terms of general lima— <br /> tations and Strengths. ' The term "economic development" is usually under- <br /> stood to include promotion and industrial recruitment programs; however, a <br /> broader defi tion would also include a utility extension policy, job training <br /> and job uppo'tunity requirements, tax incentives and financial assistance, <br /> and land use regulations and environmental controls. <br /> Organizational Modelu. <br /> The fpur models advanced as vehicles for Economic Development include <br /> the program becoming the function of: <br /> '- - _ . _ <br /> 1 . tie Chamber f Commerce <br /> 2. alprivate corporation— <br /> 3. COunty Government (Planning Department or Ma nayer`s Office) <br /> 4. reconstituted Economic Development Authority <br /> The Concept of Public Purpose <br /> | <br /> The evaluation of the efficiency d limitations of each model must take <br /> into h legal restrictions placed on the f public funds for ~c <br /> development.' »' <br /> p ty , lease or gift. <br /> It has been at least partial y <br /> in all four models. This brings about restrictions because of the "public purpose" <br /> doctrine of North Carolina constitutional law. The doctrine states that govern <br /> ment exists to serve the interests of the public at large, not the privte <br /> interests 1 a few individuals, and government may act only to serve public pur <br /> poses. Thu while private money spent by a private organization is not limited <br /> by the public purpose doctrine, public money (either County, State or Federal) <br /> appropriated to public or private economic development organizations, is. <br /> Public Funds Used for Economic Development Promotion <br /> The Jources of public funding for economic development promotion are also <br /> limited by the State law. General Statutes 163-A~l49 and 180A-209 state that <br /> property ta may be used for promotional activities only if approved by the <br /> voters. There are other sources of public funds which are available for promo- <br />